Rosebank Oil Field and Jackdaw Gas Field in the UK North Sea Should Be Producing Oil and Gas: Economic and Energy Security Benefits Should Outweigh Emissions Concerns

      Concerns about emissions and climate have led to governments essentially ‘shooting themselves in the foot’ by avoiding the development of their domestic resources. In many cases, the result of such policies has included higher energy and electricity costs, de-industrialization and loss of competitiveness, and even inadvertently increased emissions. Resources close to home and within the country are generally cheaper to develop and transport. They generate other economic benefits, including jobs, tax revenue, and cheaper feedstocks for industry. They also offer energy security and can help absorb shocks to the global energy system. A case in point is the UK’s refusal to open up drilling and production at an oil field and a gas field in the Shetland Island region of the North Sea. The fields are already discovered, assessed, and ready to be developed.

     The UK’s Energy Secretary Ed Miliband is in the hot seat now for keeping a drilling ban in place in the North Sea as well as the so-called windfall tax, which makes taxation excessive for oil & gas companies. With the war in Iran and the Middle East, there is reason to argue that this ban and the high taxes, which resulted from high oil and gas prices during the early parts of the Russian invasion of Ukraine, are not needed and counterproductive to supplying the region with affordable oil & gas. I recall reading that Trump urged Starmer to open drilling back up in the UK North Sea. Obviously, Europe is short of oil & gas supply, and not developing its own ready-to-develop resources is not smart. It is a no-brainer.

     The Chairman of Ineos, industrial magnate Sir Jim Ratcliffe, urged Miliband to approve the Rosebank and Jackdaw fields so they can be further developed. The CEO noted:

“Without reliable energy in a conflict situation, running hospitals, transportation, manufacturing and basic essentials like heating and lighting are jeopardised.”

“Our strategic defence capability is totally undermined just when we need it most. Without a reliable supply of energy, the country is crippled.”

     Sir Jim stated the obvious when he said Britain should produce its own oil & gas rather than import it, even if only for energy security reasons.

     According to The Telegraph:

“Offshore Energies UK, the trade body for the UK oil and gas industry, has stepped up its campaign to replace the windfall tax. It says the 78pc flat rate total tax imposed on UK oil and gas profits is driving companies away and destroying 1,000 jobs a month.”

“Sir Jim also called for more investment in the UK’s gas storage capacity, a cause long advocated by British Gas-owner Centrica. The Telegraph revealed last week that Britain had as little as two days of gas stored.”

     The Rosebank field is the largest undeveloped oil and gas field in British waters. It is estimated to contain around 300 million barrels of oil. Jackdaw, 150 miles east of Aberdeen, is a gas field that alone could make up 6-7% of the UK’s natural gas production. However, the UK still imports most of its natural gas. The Rosebank Field has begun development, and the Jackdaw Field is already partially drilled. Norwegian State Oil Company Equinor was granted permission to drill by a previous Conservative government, but that decision was overturned by a Scottish court in January based on a claim that the carbon emissions of the projects were not accounted for correctly. Equinor resubmitted an application to produce oil and gas at Rosebank last October. Rosebank and Jackdaw are already licensed fields, but they need the consent of the Energy Secretary.

     Existing fields in the UK North Sea are in decline and could be producing less than half of what they are now by 2030. Choosing to import rather than produce degrades energy security and makes the country vulnerable to geopolitically induced supply shocks, as is now occurring. Sir Jim also emphasized that Norway has been drilling and developing more fields and supplies in its part of the North Sea, while the UK has banned drilling and enacted excessive, unnecessary taxes on the industry.

     Sir Jim went on to quip:

“Unsurprisingly, investment is fleeing. If Britain is serious about energy security and jobs, the windfall tax must be scrapped and replaced with a stable, price-triggered system that encourages companies to invest here rather than somewhere else.”

“Net zero ambitions are good goals but should sit firmly in second place. The UK should maximise energy extraction from the North Sea alongside nuclear new builds and additional wind turbines. These are not mutually exclusive as the US has shown. We must not let ideology obscure common sense and jeopardise national security.”

“Energy security must come before rigid net zero targets and the same applies to the rest of Europe.”

     Make UK, the manufacturers’ lobby group, is also working to get Miliband to change policy. They note that the issue of de-industrialization is already in full swing, and the current policies threaten to accelerate that de-industrialization.

     Environmentalist detractors pointed out that some of the oil produced might be exported, and the gas production is not enough to matter much since most gas consumed in the UK is imported.

“Tessa Khan, the executive director at Uplift, said: “If the conflict in Iran and soaring oil prices isn’t enough to remind us of the financial pain from remaining hooked on fossil fuels, Rosebank is a rotten deal for the UK. The rig was made in Dubai, not Scotland. The oil belongs in part to the Norwegians, who will take most of the profits.”

“It will do nothing to lower energy bills – it is predominantly oil for export – and the tiny amount of gas it contains is enough to reduce the UK’s import dependency by just 1pc. It is oil for profit, at our expense.”

     Miliband should act to open these fields without further delay. They should work out the carbon emissions later. It should also be noted that Equinor has among the highest environmental and emissions standards anywhere in the oil and gas world. 

 

References:

 

Miliband urged to open Britain’s biggest oil field to avoid energy crisis. Eir Nolsoe and Jonathan Leake. The Telegraph. March 13, 2026. Miliband urged to open Britain’s biggest oil field to avoid energy crisis

Iran war is a wake-up call for Miliband, says Ratcliffe: Ineos boss urges Energy Secretary to reverse his decision to block North Sea gas development. Jonathan Leake and Tim Wallace. The Telegraph. March 12, 2026. Iran war is a wake-up call for Ed Miliband, says Sir Jim Ratcliffe