Healey Backs Rosebank Drilling as Fahnbulleh Weighs Decision
Chancellor John Healey supports approving the Rosebank oilfield licence, while Energy Secretary Miatta Fahnbulleh says she alone will make the final decision…
Chancellor John Healey backs oil drilling at Rosebank, putting him at odds with Energy Secretary Miatta Fahnbulleh as the UK government weighs whether to approve the North Sea field. Fahnbulleh has said she will make the final decision, which is expected before the end of the year.
The licence remains on hold amid concerns about the project’s environmental impact. If approved, Rosebank could trigger resistance from Labour MPs; if rejected, it would deal a blow to the North Sea energy industry and a major victory for climate campaigners.
Rosebank decision rests with energy secretary
The Guardian reported that Healey supports approving the licence. The chancellor hinted at that position last week when he told ITV he expected oil and gas revenues to contribute to a new energy wealth fund, suggesting he anticipated income from Rosebank.
Fahnbulleh, however, has said the decision is hers. Speaking to the BBC, she described the process as a regulatory decision governed by legal tests, and said the government must weigh climate effects alongside jobs and economic growth.
“Ultimately, only I can make that decision,” Fahnbulleh told reporters at a lunch for political journalists in Westminster, according to the BBC. She also warned that overriding the process could leave the decision vulnerable to a court challenge.
Prime Ministerial involvement could follow if ministers conflict over the decision, according to the Guardian. Downing Street declined to comment on Sunday after the Mail on Sunday reported that Healey and Andy Burnham had agreed to try to push the project through, saying the matter belonged to the energy secretary.
Rosebank differs from Jackdaw
Fahnbulleh has argued that the case for approving the Jackdaw gasfield does not apply to Rosebank. She said the UK would rely on gas during its transition to net zero and argued that domestic North Sea gas would be preferable to imports. Rosebank, by contrast, is an oilfield whose output is mainly intended for export.
“One is a gasfield that caters for the domestic market, while the other is an oilfield that is mainly for export,” she told the Guardian. “It is right that we judge each application in its own right, and it is absolutely critical that the decision is consistent with our climate obligations, our carbon budgets and the end destination we need to get to with the energy transition.”
That distinction matters to the public debate over energy security. Ministers backed Jackdaw on the grounds that homegrown gas would support supply and protect jobs, while critics said Rosebank’s exported oil would have no meaningful effect on UK energy security or bills. The Guardian reported that Rosebank would produce emissions about seven times greater than Jackdaw.
The BBC reported that Rosebank lies about 80 miles (128km) north-west of Shetland and would produce some gas as well as oil. The field’s oil would be taken by tanker and sold on international markets, unlike most of Jackdaw’s gas, which is likely to be used in the UK.
Climate tests and industry pressure
The decision follows legal challenges to the fields’ earlier approvals. The BBC reported that the Court of Session in Edinburgh ruled last year that Rosebank and Jackdaw had been unlawfully approved because the government had not considered the climate impact of burning the oil and gas they would produce. The government must now decide whether to approve them again, with input from industry regulators.
Labour MPs said on Wednesday there would be a major party backlash if Rosebank were approved. Some MPs have discussed ways to force or encourage a parliamentary vote as a means of expressing dissent. Officials told the Guardian that Fahnbulleh has not made her decision.
The Department for Energy Security and Net Zero said it would not comment on speculation. A spokesperson said the government would consider environmental assessments and public representations received during consultation. The department also described the North Sea as a vital national asset and said oil and gas would continue to play a role alongside the move to clean power.
Fahnbulleh has promised that future North Sea revenues will support green energy projects through an energy wealth fund. She said last week the fund would receive £2bn in the budget, but could not specify which tax revenues would go into it or how much they might generate. “The chancellor will make those details clear in the budget,” she said.
Source: theguardian.com
