Development has been approved in the UK’s largest untapped oil and gas field, Rosebank, amid rows over climate impacts. Rosebank symbolises a wider debate over new domestic fossil fuel projects.
Rosebank is three times the size of Cambo oil field which was paused in 2021 following protests. Norwegian state oil giant Equinor expects to pump 325 million barrels of oil from Rosebank, 80 miles west of Shetland, from 2027.
Rosebank oil and gas field
Rosebank is the UK’s last major undeveloped oil site and this approval is part of a broader row over whether the UK should continue to develop new oil and gas fields. The Government recently doubled down on its commitment to hand out further oil and gas licenses for the North Sea, insisting they are compatible with climate targets and could provide greener, local sources of fuel.
The Government claims that it is investing in renewable energy but oil and gas are needed for reaching net zero targets. A spokesperson for the regulator, the North Sea Transition Authority (NSTA), said its decision to approve Rosebank had been made “in accordance with our published guidance and taking net zero considerations into account throughout the project’s lifecycle”. The NSTA says it makes a holistic assessment of the impact of any project.
“As the government takes forward a pragmatic, proportionate and realistic response to the path to net zero, a key part of this will be maintaining our domestic oil and gas industry which underpins our energy security and boosts the UK economy.”
The Department for Energy Security and Net Zero
The leading global climate science authority the Intergovernmental Panel on Climate Change (IPCC), and the International Energy Agency (IEA), say no new oil and gas projects can go ahead if the world is to limit warming to internationally agreed safer limits. However, the IEA also forecasts global demand for oil to keep growing until at least 2028, and some fear cutting supply before supply falls could push up prices.
The UK’s climate advisers, the Climate Change Committee (CCC), expect the country to need some oil until at least 2050. However, around 80% of oil produced in the UK is exported. The CCC says the impact on global emissions of new UK oil and gas extraction is “not clear-cut”.
In light of the war in Ukraine, energy security is also an issue, with Energy Security Secretary Claire Coutinho asserting that “it makes sense to use our own supplies”.
Moreover, Equinor expects Rosebank to bring £8.1bn in direct investment to the UK economy, as well as providing greener oil than the average for the North Sea, at 12kg CO2 a barrel vs approximately 20kg CO2 a barrel, which could fall to 3kg if it successfully electrifies operations later on. Its spokesperson Ola Morten Aanestad said: “Equinor has a net zero plan that is in line with the Paris Agreement. There’s no scenario that anybody has produced that says in 2050 there would be absolutely no need for oil and gas.”
Opposition
The decision to approve Rosebank has sparked fury from opposition parties and environmental charities. Green Party MP Caroline Lucas labelled the decision as ” the greatest act of environmental vandalism in my lifetime” as she asserted that this will equate the emissions of the 28 lowest income countries.
Moreover, as the Labour Party has pledged to end North Sea exploration, along with the issuing of new licenses, Shadow business secretary Jonathan Reynolds stated We don’t support Rosebank. We don’t think it’s the right use of limited resources.” However, the if the party gets into power, it will not revoke the licence.
According to analysis by campaign group, Uplift, Emissions just from getting the oil out of the ground at Rosebank, before it has even been burned, would be enough to blow the rest of the emissions the UK has budgeted for from oil and gas production. Tessa Khan, executive director said “We are teetering on the edge of surpassing 1.5C of warming – a limit agreed on by world leaders and essential to ensuring a habitable planet. Yet the government allows companies like Equinor to “blow through” pollution targets “for the sake of profit.”
Additionally, Greenpeace stated “A disaster for the climate and for people’s energy bills. Rishi Sunak has proven once and for all that he puts the profits of oil companies above everyday people”.
Final thought
The decision to approve Rosebank is a controversial one. Environmentalists believe that energy security and cheaper bills can be achieved by upscaling affordable renewables and insulating homes. The vast majority of the energy that will be produced as Rosebank will also be for export, calling into question the Government’s reasoning surrounding energy security.
Curia’s sustainability commission
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