San Francisco Frontiers - UK govt approves drilling in Jackdaw gas field

The Labour administration promised when returning to power in 2024 not to issue any new oil and gas drilling licences as it steers Britain away from fossil fuels towards cleaner renewable energy.

But Prime Minister Andy Burnham said approving the drilling in the Jackdaw field, about 150 miles (240 kilometers) east of Aberdeen, would "protect hundreds of jobs and help keep millions of homes warm this winter".

"At a time when people are really struggling, it's right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help," he said.

"We're committed to moving towards renewable energy and reaching net zero by 2050.  But even on our ambitious climate path, we'll still require oil and gas as part of our energy needs for decades to come," Burnham added.

"That's why we're taking a pragmatic approach to the North Sea."

The previous Conservative government approved drilling at Jackdaw and the Rosebank field -- which mainly contains oil and lies west of the Shetland Islands -- before both sites became the subject of a lengthy legal battles.

Scotland's courts overturned the approval following a challenge from environmental campaigners.

Adura, the company managing both sites, says the fields could deliver around six percent of the UK's gas production in the North Sea.

Additionally, the sites can contribute more than £28 billion ($38 billion) to the nation's economy, supporting over 3,500 jobs.

The decision comes as the UK faces pressure also from US President Donald Trump for more drilling of fossil fuels in the North Sea.

Critics argue that UK consumers would see no difference in their electricity bills, as gas and oil costs are determined by international market prices.

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U.Lee--SFF