Labour Urged to Ignore Green Pressure and Drill for More Oil

Labour is facing calls to resist pressure from environmental campaigners and approve drilling at Rosebank, described as Britain’s largest undeveloped oil field.

Energy Secretary Miatta Fahnbulleh was expected to turn down plans for the North Sea project, despite approving production at the Jackdaw gas field only hours earlier.

Union leaders and Labour MPs have urged ministers to back further oil extraction. Their position was reinforced by Donald Trump, who called on the UK to go “full blast” in developing its North Sea resources.

However, Ms Fahnbulleh indicated that Rosebank was likely to be rejected, arguing that the two developments had to be assessed on different grounds.

Climate campaigners oppose Rosebank because they estimate its eventual carbon dioxide emissions would be roughly seven times higher than those linked to the Jackdaw project.

Ed Miliband, the Foreign Secretary and former energy secretary, is understood to be firmly against the proposed drilling. Ms Fahnbulleh said: “One is a gas field that serves the domestic market, while the other is an oil field that is primarily intended for export.

“It is right that we assess each application on its own merits, and it is absolutely critical that any decision is compatible with our climate obligations, carbon budgets and the ultimate destination of the energy transition.”

The Energy Secretary has already faced criticism from Labour’s Left wing after granting approval for Jackdaw, which could start delivering gas to British homes and businesses within weeks.

Once fully operational, Jackdaw could account for 6 per cent of North Sea gas production and deliver an estimated £2.9 billion boost to the economy while helping safeguard jobs.

Ms Fahnbulleh acknowledged that the project would not reduce household energy bills. Instead, she said, it would strengthen energy security amid the war in the Middle East.

Unions welcomed the decision to approve Jackdaw. Gary Smith, general secretary of the GMB, said the Government deserved “real credit” for backing the project.

He nevertheless called on ministers to go further by approving Rosebank, a move expected to trigger a much more contentious political and environmental debate.

Rosebank is significantly larger, with estimated reserves of between 300 million and 500 million barrels of oil. The field could eventually represent about 8 per cent of UK oil production.

Campaigners say the emissions generated by Rosebank’s oil would be seven times greater than those associated with gas from Jackdaw.

Scottish Labour leader Michael Marra has previously told Andy Burnham that he supports Rosebank drilling, arguing that the project could provide a substantial boost to Scotland’s economy.

Sharon Graham, general secretary of Unite, also welcomed the Jackdaw approval and has previously pressed the Government to support Rosebank.

Scottish Labour MP Graeme Downie said on X that he was “glad” Jackdaw had been approved, adding that the UK would continue to need oil and gas for decades.

Neil McCulloch, chief executive of Adura, the company part-owned by Shell that is behind both projects, said he believed that Rosebank would also be approved.

‘Jackdaw represents a significant prize in its own right: £2.1billion of investment and enough gas to heat the equivalent of around 1.4million UK homes at peak production. Our attention now turns to Rosebank. The case for approval is equally strong.’

Donald Trump, who has repeatedly called for more exploration of the North Sea, said the decision on Jackdaw was ‘great news’. 

The US President posted on Truth Social: ‘The U.K. has started drilling in the North Sea, one of the greatest and most prosperous areas of OIL in the World.

‘They should go FULL BLAST!!! This will make the U.K. very wealthy again. TAKE DOWN THE COSTLY AND RIDICULOUS WINDMILLS!’

The Tories called for Rosebank to be approved, with shadow energy secretary Andrew Bowie saying the move would boost national security.

Writing in the Daily Mail he said: ‘At a time of such geopolitical uncertainty, with over 80 per cent of UK households relying on gas heating, it is in the national interest to maximise our own North Sea resources and reduce our reliance on expensive, dirtier imports.’ 

While Labour’s 2024 manifesto committed to issuing no new oil and gas licences for the North Sea, Jackdaw and Rosebank had already received approval. The decisions by the Conservatives were overturned by a legal challenge and fresh assessments completed.

Ms Fahnbulleh has received considerable flak from some Labour MPs over Jackdaw. 

Hard-Left MP Richard Burgon said it was an ‘absolutely terrible decision’, while Alex Sobel said it would give ‘mixed messages’ on climate change. Chris Hinchcliff co-ordinated a letter from Left-wing MPs urging the Government not to approve Rosebank.

Environmental campaigners protested outside the Energy Department and the Greens accused Labour of ‘climate vandalism’. They urged the Prime Minister not to give permission for Rosebank which is the next decision the Energy Secretary must make.

Mr Burnham said: ‘We’re committed to moving towards renewable energy. But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. 

That’s why we’re taking a pragmatic approach to the North Sea.’ Tory leader Kemi Badenoch said Labour should have taken the decision to approve Jackdaw earlier instead of ‘faffing about’.

Commons Speaker Sir Lindsay Hoyle said it was ‘shameful’ that the Energy Secretary was not in Parliament to make a statement on the decision.

Asked whether the Energy Secretary’s comments indicated that she was unlikely to approve Rosebank, a spokesman said each project would be ‘assessed on its own merits’.