Climate campaigners immediately objected to the approval of the massive Rosebank oilfield development in the North Sea by UK regulators.
The North Sea Transition Authority gave its approval to Norway’s state backed Equinor on Wednesday to develop the Rosebank Oil and Gas Project, approximately 80 miles off of the coast Shetland.
The development of the Rosebank Field has become the focal point of climate debates in the UK. Environmentalists are pitted against Conservative Prime Minister Rishi sunak, who places energy security and affordability above green ambitions.
Sunak welcomed the license approval on Tuesday, calling it the “right long-term decision” for the UK’s security of energy.
His remarks reinforced a notable shift in tone over the past few weeks, as the Conservatives have sought to distance themselves from the opposition Labour Party ahead of the general election next year.
Equinor estimates that it will be able produce around 300mn barrels from the project during its lifetime. This is the equivalent to roughly three days’ global demand.
Phil Evans, Greenpeace UK’s climate campaigner said that the decision is “carte blanc to fossil fuel companies” to ruin the climate.
Sunak’s decision comes after he diluted policies intended to help the UK achieve its greenhouse gas emission targets, saying that he wanted to take a “pragmatic approach.
He said that the ban on pure petrol and diesel vehicles would be delayed from 2030 to 2035. About a fifth (25%) of households will not have to use fossil fuels to heat their homes after 2035.
This move sparked concern amongst his own MPs, such as Sir Alok Singh, the president of the UN’s COP26 international climate change conference, which the UK will host in Glasgow in 2021.
Sharma said on X (formerly Twitter) last week that he is “concerned” about the “fracturing of UK’s political consensus on climate change”. The Reading West MP announced on Wednesday that he does not intend to run again at the next general elections.
Claire Coutinho said her Conservative Party would not “play political” with energy security, and that fossil fuels are still needed on the medium-term despite Britain’s efforts to decarbonise.
She said, “Even independent Climate Change Committee said in 2050 we will require oil and gas to provide a quarter our energy.”
The GMB Union is one of the party’s largest donors and has expressed concern about the loss of jobs.
Neil Gray, Scotland’s energy secretary said that the government at Edinburgh was disappointed Rosebank was approved, without addressing their concerns that the majority of the oil extracted will be exported and “not necessarily contribute to the security of our domestic energy supply”.
Gilad Myerson said that Ithaca Energy’s executive chairman, who is Equinor’s minor partner in the Rosebank Project, had spoken to all of the major political parties, including Labour, about the project.
Myerson stated that “most people agree there will still be a demand for oil and natural gas in the 2050s, and beyond.” The UK must decide whether to import oil and gas, or produce it itself. . . Producing your own energy gives you greater energy security, lower CO2 emissions per barrel, and more jobs.
“We believe that whoever is in power, whether it’s Labour or Conservatives, will create a fiscal system to support the industry.”
Caroline Lucas, Green Member of Parliament, stated: “We are aware that climate change is becoming more urgent.
No one suggests turning off oilfield taps immediately. We are saying that locking in more oil and gas when we know it’s time to phase them out is reckless.
International Energy Agency reiterated this week a warning that was first issued in 2021. It stated that new oil and natural gas fields were not needed to achieve the goal of achieving net zero carbon emission by 2050.
The report said that it was “highly commercially risky” to build new oil and gas fields if demand for oil is reduced, given the supply from existing projects.
Equinor shares rose 1.6%, while Ithaca Energy shares rose 9.0%.