UK risks being 'uninvestable' if new oil and gas fields not approved, warns oil giant

What decision is the UK government making about the Rosebank and Jackdaw oil and gas fields?

The government is deciding whether to grant final approval for oil and gas production at Rosebank and Jackdaw. This matters because the decision will shape the UK’s energy policy, climate credibility, and relationship with major investors. It also tests Labour’s promise to stop new oil and gas fields.

Both projects were initially approved by the former Conservative government. A Scottish court later delayed them after environmental groups argued that their climate effects had not been fully considered. The government then held a public consultation, which closed in August. The final decision now rests with Energy Secretary Miatta Fahnbulleh.

Ministers say they will consider all relevant evidence, including environmental assessments and public representations. Equinor supports approval and warns that rejecting the fields could make the UK less attractive for future investment. Environmental campaigners oppose new drilling, while the government says oil and gas will remain important during the transition to clean power.

What are Rosebank and Jackdaw, and where are they located?

Rosebank and Jackdaw are offshore oil and gas developments. They are not simply exploration ideas: both projects had already received initial approval from the former Conservative government. Their remaining hurdle is final approval to proceed with extraction after a court ruling and public consultation.

Rosebank is the larger and more clearly located project in the article. It sits in the North Atlantic, roughly 80 miles northwest of the Shetland Islands. The article does not state Jackdaw’s exact location, although it discusses both fields as part of the UK’s North Sea oil and gas industry. Both are operated by Adura, a joint venture between Equinor and Shell.

The fields matter because they represent new UK production at a time when national output is expected to decline. Jackdaw’s construction is described as 99% complete. If approval comes soon, Adura says it could begin delivering gas to UK homes by this winter, making its timing especially significant for energy policy.

How large is Rosebank, and how important is UK gas production compared with the country's demand?

Rosebank is described as the United Kingdom’s largest undeveloped oil and gas field. It is thought to hold up to 500 million barrels of oil and gas. That scale makes the approval decision nationally important, even though the article does not provide a direct percentage for how much UK demand Rosebank alone could meet.

The wider supply picture is more revealing. UK production is forecast to halve by 2035. At present, the country already relies on Norway for half of its gas needs. Equinor, Norway’s state oil company, predicts its own production will stay at current levels until the middle of the next decade. These figures show why supporters connect new fields with energy security.

However, large reserves do not automatically equal large domestic supply. Production depends on approval, construction, timing, and how the oil and gas are sold. Campaigners say Rosebank’s output would be overwhelmingly exported. The article therefore presents a tension between national production and actual UK energy demand.

Why has a Scottish court delayed the projects, and what climate impacts must the government consider?

The projects were delayed because environmental groups argued that their approval did not fully account for climate impacts. A Scottish court accepted that the earlier consent process needed further consideration. The issue was not simply whether drilling would occur offshore, but whether the assessment covered the emissions created when the produced fuels are eventually used.

Following the ruling, the government held a public consultation on both sites. It must now consider environmental assessments and representations received from the public. This means the decision involves more than the fields’ engineering or economic value. It also concerns whether approving new extraction fits the UK’s climate commitments and Labour’s promised ban.

The article does not list a separate quantified emissions figure for either field. It makes clear, however, that climate effects are central to the decision. Environmental campaigner Tessa Khan says Rosebank threatens Labour’s climate credibility. The government must balance that concern against energy security, jobs, investment, and continued fuel demand.

Who are Equinor, Shell, Adura and Ithaca, and what interests do they have in these fields?

Equinor is a Norwegian state oil company and part-owner of the projects. Shell is its joint-venture partner. Together, they operate Rosebank and Jackdaw through Adura. Ithaca is an Aberdeen-based energy company that owns 20% of Rosebank. These companies have financial interests in receiving approval and producing oil or gas.

The ownership structure explains the pressure surrounding the decision. Adura has already advanced Jackdaw’s construction, which it says is 99% complete. Approval could allow that project to deliver gas to UK homes as soon as this winter. Rosebank is also valuable because it is the UK’s largest undeveloped oil and gas field, with up to 500 million barrels of oil and gas.

Equinor’s interest extends beyond these individual fields. Chief executive Anders Opedal warned that rejecting new drilling could make the UK less investable. He said Equinor would take a hard view about future investment. Shell and Ithaca’s specific public positions are not detailed in the article, but their ownership gives them commercial stakes in approval.

What could happen to UK investment, domestic energy production and energy security if the fields are approved or rejected?

Approval would give the projects permission to produce and could strengthen the case for continued investment in the UK. It could also add domestic output, which supporters link to energy security. Equinor says rejecting both fields could make the UK “uninvestable” and force it to reconsider future investments. That warning gives the decision consequences beyond these two sites.

Jackdaw offers the clearest near-term example. Adura says construction is 99% complete and that the field could deliver gas to UK homes by this winter if approval arrives soon. Rosebank is much larger, holding up to 500 million barrels of oil and gas. The mechanism is straightforward: approval enables extraction, which can add production and potential supply.

Rejection would block these projects and could discourage some investment, according to Equinor. It would not automatically end UK energy production or remove Norway’s supply. UK production is forecast to halve by 2035, and the country already relies on Norway for half its gas needs. The long-term security effect therefore remains contested.

Why might producing more oil and gas in the UK not necessarily lower household energy bills?

Producing fuel in the UK does not automatically make household energy cheaper. Oil and gas are traded in wider markets, so prices can rise or fall because of international supply, demand, and events. Domestic production may improve supply security, but it does not guarantee that companies will sell the output cheaply to UK households.

Rosebank shows the concern clearly. Tessa Khan of Uplift says the field’s output would be overwhelmingly oil for export. In that case, much of the production could leave the country or be sold at market prices. The field might generate company and government revenue without directly reducing household bills. Jackdaw could supply UK homes with gas, but the article does not say that its gas would lower prices.

This creates a policy trade-off. Supporters see domestic production as useful for security, jobs, and the transition period. Critics say new drilling is a poor deal if bills remain high and climate impacts grow. The government says oil and gas will remain important alongside clean power, but bills are not guaranteed to fall.

Key Facts:

📌 The government will decide whether Rosebank and Jackdaw receive final extraction approval.

📌 Energy Secretary Miatta Fahnbulleh holds the final decision.

📌 The decision follows a public consultation that closed in August.

📌 Rosebank lies about 80 miles northwest of the Shetland Islands.

📌 Both projects are offshore oil and gas developments.

📌 The article does not specify Jackdaw’s precise location.

📌 Rosebank could hold up to 500 million barrels of oil and gas.