The Jackdaw and Rosebank projects, operated by Shell and Equinor respectively, are once again under fire.
On November 12, a judicial review, authorized by the Scottish courts, will be conducted at the request of Greenpeace UK, which is challenging the validity of the authorizations granted for these projects in the North Sea.
This action comes at a time when the two projects have recently received approval from the UK government, despite strong opposition from some non-governmental organizations.
Jackdaw, located in the Central North Sea region, is expected to produce around 40,000 barrels of oil equivalent per day at its peak.
The infrastructure is already in place, and gas production could be connected to the St Fergus terminal, where the Acorn carbon capture and storage project is being developed.
Although Shell has claimed that this project meets all regulatory standards, Greenpeace maintains that the continuation of these activities runs counter to the UK’s decarbonization objectives.
Rosebank, a key project for energy security
Rosebank, developed by Equinor, is one of the largest undeveloped oil projects on the British continental shelf.
With around 300 million barrels of reserves, it represents a major challenge for the UK’s energy security.
Production from this oil field, located to the west of Shetland, is scheduled for 2026-2027.
However, like Jackdaw, Rosebank is facing legal challenges to its operating licences.
The British government justifies the continuation of these projects by the need to ensure a certain energy independence in an uncertain global context.
The domestic oil sector still covers around 50% of the country’s energy needs.
Domestic production is in decline, recording a 9% drop in the second quarter of 2024.
These projects are therefore seen as crucial to limiting the UK’s dependence on oil imports.
Economic stakes and political tensions
The Jackdaw and Rosebank projects are part of a government strategy to reconcile energy security with the transition to more sustainable energy sources.
The previous Conservative government had approved these projects, claiming that the UK would continue to rely on hydrocarbons for decades to come.
Although the new Labour government has promised to stop issuing new oil and gas exploration licenses, it has assured us that those already granted will not be revoked.
This pragmatic stance reflects the complexity of energy decisions in a context of transition.
Dependence on hydrocarbons remains a reality for the UK, and these North Sea projects are seen as essential to guarantee continuity of supply.
However, this energy policy is not going smoothly, not least because of pressure from environmental groups to speed up decarbonization efforts.
Progress in reducing emissions
Despite controversy, the UK oil and gas sector is highlighting its efforts to reduce emissions.
Offshore Energies UK, the trade association representing the sector, reports a 28% drop in emissions from upstream installations since 2018.
This reduction has been achieved through technical improvements and projects such as the installation of new power generation plants on platforms.
These initiatives are part of the North Sea Transition Deal, signed in 2021, which aims to reduce the sector’s emissions by 50% by 2030 compared with 2018 levels.
However, questions persist as to the balance between continuing oil activities and accelerating decarbonization efforts, particularly with the UK’s long-term carbon neutrality targets.
Outlook for the UK oil market
Despite the legal challenges, the Jackdaw and Rosebank projects play a key role in the UK’s energy strategy.
Rosebank, in particular, is set to make a significant contribution to benchmarks such as Dated Brent.
This project produces heavier oil than other grades in the region, but its development could have a major impact on the international market, notably by stabilizing UK export volumes.
The UK thus finds itself at a crossroads between the need to maintain hydrocarbon production to ensure its energy security and the growing pressure to accelerate its energy transition.
The outcome of Greenpeace’s legal action could have a significant impact on the country’s oil strategy and the timetable for its energy transition.
