UK government divided over Rosebank development — The Guardian

Disagreements have emerged within the UK government over a possible permit for drilling at the Rosebank oil field in the North Sea. Chancellor John Healey supports the project, while Energy Secretary Miatta Fahnbulle, who is responsible for the decision, is leaning towards rejecting it, The Guardian reports.

The final word may rest with the prime minister

The Rosebank licence is currently on hold due to concerns about the project’s environmental impact. Last week, Healey told ITV that he expected oil and gas revenues to contribute to a new energy fund. According to the publication, this may indicate that he is counting on proceeds from Rosebank.

If a conflict arises between government members, the final decision is expected to be made by the prime minister. A government spokesperson declined to comment on a Mail on Sunday report claiming that Healey and Andy Burnham had allegedly agreed to promote the project, stressing that the matter falls within the energy secretary’s remit.

The Department for Energy Security and Net Zero said it does not comment on speculation. It added that all relevant evidence, including environmental assessments and comments received during consultations, would be considered when making the decision.

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Difference from the Jackdaw gas field

Fahnbulle previously approved development of the smaller Jackdaw gas field but said its circumstances differed from those of Rosebank. According to her, the UK will need gas during the transition to net zero, and gas extraction in the North Sea has a smaller carbon footprint than imports.

The energy secretary noted that Jackdaw is aimed at the domestic market, while Rosebank is an oil field whose output will mostly be exported. According to The Guardian, Rosebank will produce about seven times more emissions than Jackdaw, while its benefit to the country’s energy security may be lower because its oil will be exported.

No final decision has yet been made, and it is expected by the end of the year. Rejecting Rosebank would, according to the publication, be a blow to the North Sea energy industry and a victory for climate activists. Labour MPs said that approving the project could trigger significant resistance within the party.

Fahnbulle also promised to direct future North Sea revenues to clean energy projects through the energy fund. Last week, she said the fund is to receive £2 billion in the budget.