UK
Why is Rosebank going ahead and why does it face such opposition?
Danny Halpin, PA Environment Correspondent
Wed, 27 September 2023
Regulators have given the go-ahead for the Rosebank oil and gas field to start developing and producing fossil fuels, angering environmentalists and some MPs.
The Government has said it will boost the economy and energy security with the North Sea Transition Authority (NSTA) – the body that approves oil and gas licences, which is tasked with “maximising the economic recovery” of oil from the North Sea – having given its consent for Rosebank to be developed.
Why is Rosebank going ahead and why is there such opposition? The PA news agency looks into the controversies around the oil and gas field, why some believe it should progress and why others believe it should be scrapped.
– What is energy security?
The UK Government has said energy security is one of its “greatest priorities” and mentioned the term 40 times in its Powering Up Britain report published earlier this year after establishing the Department for Energy Security and Net Zero (Desnz).
Despite this, it has been unable to provide a clear definition of what energy security means, implying that it could signify a more reliable energy supply for the UK, increased self-sufficiency or using fossil fuels as a stop-gap while renewable power is built up, though without committing to either explanation.
The International Energy Agency (IEA) defines it as: “The uninterrupted availability of energy sources at an affordable price.”
– Why is Rosebank so controversial?
Opponents of its development believe that uninterrupted availability of affordable energy could and should come from renewable sources, while the Government and the oil and gas industry say abandoning North Sea reserves would only result in greater dependence on foreign oil producers.
Rosebank is thought to contain up to 350 million barrels of oil, according to owners Ithaca Energy and Equinor, who say it is capable of producing 69,000 barrels a day – about 8% of the UK’s projected daily output between 2026 and 2030 – and 44 million cubic feet of gas per day.
Currently the UK imports around half of its gas, mostly from Norway, which also provides around half the amount of oil the UK imports.
Russia was the largest source of refined oil until the Ukraine invasion, and the UK Government says developing more North Sea oil and gas will further offset this dependency while protecting consumers from volatile international price hikes.
On the other side, many researchers, campaigners and opposition MPs say rapid development of renewables would better protect consumers as they would not need oil and gas to power their cars and homes, adding that clean power also has the benefit of not producing emissions that are heating the planet to dangerous levels.
– Will Rosebank lower bills?
The owners say it is expected to start producing in 2026-2027 so there will be no immediate relief for consumers in the current energy crisis.
As oil and gas prices are set internationally and as much as 80% of the oil produced is expected to be sold outside the UK, Rosebank is unlikely to have any significant impact on consumer bills in future either, having “at most, a marginal effect”, according to the Climate Change Committee (CCC).
– How many jobs will it provide?
Ithaca and Equinor say Rosebank will support around 1,600 jobs at its peak during construction and around 450 over the long term.
They also said the project is estimated to create £8.1 billion of direct investment, of which £6.3 billion is likely to be invested in UK businesses.
– How does it fit in with the Government’s net zero plan?
Planned electrification of North Sea rigs means they will increasingly draw their power from renewable energy sources, therefore fitting in with how the UK Government counts its emissions reductions to net zero.
The emissions from the oil and gas once burnt are not included in the Government’s net zero calculations.
North Sea reserves are declining regardless of political decisions, with the Government wanting to use what is available.
Labour has said it would not grant any new licences if it wins the next election but would honour those already in place – including Rosebank.
– How will these emissions affect the rest of the world?
The CCC, which advises the Government on how to reach net zero, said it is very difficult to understand how this extra fuel would affect global markets, whether it would add to consumer demand or replace oil and gas produced in other countries.
This is because of the complexities of climate policies in various countries aiming to phase out fossil fuels as well as the volatility of the international market.
The IEA said in its global pathway to net zero by 2050, published two years ago, that no new oil, gas or coal is needed, though it did not single out specific projects such as Rosebank.
Developing Rosebank oil field ‘wrong decision’, says Scottish First Minister
Danny Halpin, PA Environment Correspondent
Wed, 27 September 2023
Developing Rosebank is “the wrong decision” while new oil and gas licences will slow down the energy transition, Scotland’s First Minister has said.
Humza Yousaf expressed his opposition to the project after the North Sea Transition Authority (NSTA) announced it had given its consent for the largest untapped oil reserve in UK waters to be developed.
The UK Government said it supports the decision and wants hundreds of new licences to be awarded to producers of North Sea oil and gas.
Doorstepped at the Scottish Parliament, Mr Yousaf told Bauer Media: “What I would say is I think Rosebank is the wrong decision. The decision that has been made today it is not the right decision to be made.
“Scotland’s future, the north east’s future, is as the net zero capital not just of Europe but of, I hope, the world.
“And, of course, new oil and gas licences being given the go-ahead will slow the pace of that transition down.
“I want to accelerate that transition and take the workers with us.”
The UK Government said Rosebank will provide more jobs and reduce the need to import fuel from hostile countries such as Russia.
Secretary of State for Energy Security and Net Zero Claire Coutinho said it “makes sense to use our own supplies” of North Sea oil and gas, although any fuel extracted from Rosebank will mostly belong to Equinor, whose largest shareholder is the Norwegian state.
As the majority of this fuel is expected to be sold internationally, many researchers, campaigners and opposition MPs have questioned whether adding a significant amount of greenhouse gases to the atmosphere is worth any economic and security gains.
Ms Coutinho said: “The jobs and billions of pounds this is worth to our economy will enable us to have greater energy independence, making us more secure against tyrants like (Vladimir) Putin.
“We will continue to back the UK’s oil and gas industry to underpin our energy security, grow our economy and help us deliver the transition to cheaper, cleaner energy.”
Rosebank’s owners say its development will create 1,600 jobs during the peak of its construction and 450 over the long term, while producing £6.3 billion that could be invested in UK businesses.
The oil and gas industry currently supports tens of thousands of jobs in Scotland and Rosebank has been the centre of a debate around how fast North Sea rigs should be shut down, if at all.
Labour’s policy of stopping the approval of new licences was criticised by the leader of the GMB union who called the policy “naive”, while the Scottish Government has been reluctant to take a strong opposing view until today.
Former First Minister Nicola Sturgeon said at Cop27 last year that it was important to move away from fossil fuels, but did not take a stand on Rosebank specifically.
After the NSTA announcement she wrote on social media that she agrees with Green Party MP Caroline Lucas, who described the decision to give consent to Rosebank as the “greatest act of environmental vandalism in my lifetime”.
Ms Sturgeon said: “Agree with @CarolineLucas. Also, by consuming scarce resources that could be going to renewables, it risks slowing the green transition and the jobs that come from it.
“That’s not in interests of those who work in oil & gas – they need that transition to happen at pace.”
The Climate Change Committee, which advises the UK Government on how to reach net zero, said many jobs will also be created by replacing oil and gas with renewable power.
The International Energy Agency said that globally, replacing fossil fuels with renewables and going net zero by 2050 would save the world economy 12 trillion dollars (£9.8 trillion).
Rosebank ‘trashes’ UK’s global reputation, says Lord Goldsmith
Danny Halpin, PA Environment Correspondent
Wed, 27 September 2023
Allowing the development of the Rosebank oil and gas field damages the UK’s reputation internationally, Conservative Lord Zac Goldsmith has said, as he hinted at voting for an opposition party come the next election.
The North Sea Transition Authority’s decision to grant consent to Equinor and Ithaca Energy to begin developing the largest untapped reserve of oil in UK waters has ignited fury among climate-minded politicians such as Lord Goldsmith, who accused the Government of losing sight of its climate commitments.
Speaking to BBC Radio 4’s PM programme, the Tory peer said: “It just trashes the UK’s reputation as a reliable, grown up member of the global community, it’s done us immeasurable harm.”
He also attacked the delay to net zero policies such as a ban on new petrol and diesel cars announced last week by the Prime Minister, saying the Conservative Party seems to be in “disarray” and that he may not be able to vote for it.
“If this is the direction that the party is determined to take, and it seems to be, there’s no way I can vote for a party that positions itself, that the Conservative Party is currently positioning itself, on climate and nature,” he said.
“The party that loses sight of the overall goal is not one that deserves to be given the privilege of power.”
The Government said issuing new oil and gas licences and allowing those approved to be developed, such as Rosebank, would boost the UK’s energy security, though when asked, the Department of Energy Security and Net Zero was unable to provide a definition of what energy security means.
Ministers also argue that it would mean less oil is imported from hostile countries such as Russia.
As Rosebank will take until 2026-2027 to begin producing, it will be unable to offer immediate relief to consumer bills and because most of the fuel is likely to be exported, it would at best have only a marginal impact on bills in the future, the Climate Change Committee has said.
Labour’s policy if it wins the next election is to put a stop to new oil and gas licences, though it would honour any that are in place at the time the party gains power.
Speaking to Nick Robinson’s Political Thinking podcast, Sir Keir Starmer said this is a “deliberate” policy to ensure stability in the economy.
“What we’ve said is no new licences to be granted when we’re in power, but we won’t revoke anything, any licences that are granted before we come into power,” he said.
“I’m mindful of the fact that if there’s one thing that has killed growth in the last 13 years, and it has been killed, it’s the chopping and changing lack of strategic thinking.
“And, therefore, as a matter of principle, we will accept, as it were, the baseline that we inherit from the Government if we win that election.”
Environmental Secretary Therese Coffey insisted the new oilfield was part of a transition as the UK “gradually” divests from fossil fuels.
Ms Coffey told C4 News: “We’re still on a journey of transition and it’s important that we still have sources of oil as we make our way to net zero.”
She also defended a reported multimillion-pound taxbreak being handed to the company behind Rosebank.
“It’s important that we continue to attract investment as part of getting towards net zero, that will be done in a variety of ways, one of those is about supporting some of these energy companies in that regard,” she said.
SEE
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