Drilling in North Sea oilfields could still happen, despite court rulings earlier this you that prevented the go-ahead of several new North Sea oilfields, as the UK government publishes guidance on how it will consider fresh applications for oil and gas projects.
Operators will now have to draw up new environmental impact assessments that take emissions released from burning oil and gas into account – not just the emissions from production. This could pave the way for Ministers to give approval for drilling at two controversial North Sea oilfields, Rosebank and Jackdaw, as new guidance on how energy firms should account for future emissions was released. However, approval is not guaranteed.
Energy Minister Michael Shanks said the guidance provided clarity on the future for the North Sea oil and gas industry. Shanks said: “This new guidance offers clarity on the way forward for the North Sea oil and gas industry, following last year’s Supreme Court ruling…It marks a step forward in ensuring the full implications of oil and gas extraction are considered for potential projects, and that we ensure a managed, prosperous and orderly transition to the North Sea’s clean energy future, in line with the science”. He went on to say: “We are working with industry, trades unions, local communities and environmental groups to ensure the North Sea and its workers are at the heart of Britain’s clean energy future for decades to come – supporting well-paid, skilled jobs, driving growth and boosting our energy security.”
However climate campaigners say drilling in North Sea oilfields will make “barely a dent” in the UK’s reliance on imported fossil fuels.
Previously, assessments took into account emissions generated by the process of extracting oil and gas. However, they did not count the greenhouse gases which would be released when those fossil fuels were eventually burned – known as “downstream” or “Scope 3” emissions.
In January, the Court of Session in Edinburgh ruled that the decision by the Supreme Court should apply to Jackdaw and Rosebank. Shell’s Jackdaw gas field in the North Sea was originally approved by the Conservative government, and the industry regulator, in summer 2022. Permission for the Rosebank oil development was granted in autumn 2023.
In his judgement, Lord Ericht said work on both fields could continue while the new information was gathered but no oil and gas could be extracted unless fresh approval was granted. That is exactly what the companies will now be looking for.
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