The £2.1 billion Jackdaw gas project received approval on October 21, and Offshore Energies UK (OEUK) says it can produce gas within weeks, in time for the coldest months of winter. The trade body says Jackdaw will lift domestic gas supply by 6%, equal to the gas needed to heat about 1.4 million UK homes.
OEUK says the decision followed a regulatory process led by the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), which included public consultation and review of the latest environmental evidence. It also says Jackdaw's production emissions run at around half the UKCS average and roughly eight times lower than imported liquified natural gas (LNG).
OEUK pushes for a larger pipeline
OEUK calls Jackdaw a first step toward £50 billion of investment in new North Sea oil and gas production. It points to a wider pipeline of more than 100 projects, including the Rosebank oil field. The group says that pipeline could bring forward more than three billion barrels of additional domestic production and help the UK meet at least half of its oil and gas demand up to 2050 from home supply.
The group says the UK relies on imports for around 40% of its energy needs. It also says the UK will still need more than 10 billion barrels of oil and gas between now and 2050.
Budget ask
Ahead of next week's budget, OEUK is calling for the Treasury's proposed Oil and Gas Revenue Levy (OGRL), a permanent windfall tax triggered when prices are high. Industry analysis cited by OEUK says introducing it in 2027 and unlocking extra investment could raise £14.9 billion in additional tax revenue over the next decade.
OEUK chief executive David Whitehouse said Britain spent £84 billion on energy imports last year, almost 3% of GDP. He added: "We want the UK government to be supportive of domestic production over imports."
