Report argues Jackdaw field could lower UK gas prices

A new report has argued that North Sea gas represents the cheapest source of energy available to Britain, thereby reducing the cost of both gas and electricity. Kathryn Porter, founder of the independent energy consultancy Watt-Logic, issued the document to challenge the prevailing view that domestic production cannot lower household bills because gas is a globally traded commodity. Porter described this argument as a myth, asserting that a better understanding of pricing mechanisms would clarify the benefits of maximising domestic output.

The publication arrives as pressure mounts on Prime Minister Andy Burnham to make a decision on the Jackdaw oil and gas field. This is the second largest hydrocarbon field in the UK continental shelf and is currently awaiting a government ruling on whether it will proceed. Porter criticised policy makers for their limited understanding of commodities pricing and the UK’s marginal pricing model. She dismissed claims that North Sea production is in terminal decline and no longer worth pursuing as both dishonest and stupid, arguing that the case for domestic production becomes obvious once the pricing mechanism is understood.

Porter stated that North Sea gas is not only cheaper than imported liquefied natural gas but also cleaner. She emphasised that domestic gas is more secure than imported supplies because it is directly connected to the National Transmission System. Unlike an LNG cargo, which can sail away if a buyer elsewhere offers more money, domestic supply remains available. The report notes that the Jackdaw field is large enough to fully displace price-setting LNG for between two and four months of the year, which would have a meaningful impact on summer gas prices.