The approval for Jackdaw, alongside the pending decision on the larger Rosebank field, represents a significant test of Labour's energy policy. Labour's 2024 election manifesto committed to a ban on new drilling licences, but the government maintains that Jackdaw is a pre-existing licence seeking environmental consent, not a new one. The decision was delayed from last month, seemingly to avoid the Holborn and St Pancras byelection on 8 October.
Fahnbulleh stated the decision supports energy security with 'homegrown gas' and minimises reliance on 'higher emission fuels' during the transition to renewables and nuclear, insisting it is 'compatible with our legally binding climate commitments'.
Environmental groups decried the announcement. Tessa Khan, executive director of Uplift, dismissed the project's significance, stating Jackdaw will supply 'around just 2 per cent of our gas demand for roughly 10 years' and will be largely unmanned, creating minimal jobs. 'Labour's climate credibility is on the line. No new oil and gasfields are compatible with safe climate limits,' she said.
Green Party leader Zack Polanski called the decision a 'victory for Shell over the people' and 'climate vandalism'. He noted the energy secretary had herself said it will make no difference to energy bills, and that the industry's own assessment suggests only 27 jobs will be created.
The political stakes are high. A poll by Savanta for the climate group E3G found nearly a third of voters would be less likely to vote Labour following this decision, including half of 18- to 24-year-olds. Ellie Mae O'Hagan of E3G argued the public has 'made up its mind' against more drilling and urged investment in heat pumps and solar.
The decision is broadly welcomed by unions in north-east Scotland, where much of the industry is based. However, Labour faces internal pressure from MPs in seats facing Green challenges. Meanwhile, the industry, represented by Adura, a joint venture of Shell and Equinor, argues rejecting the fields would cost the UK economy nearly £10.8 billion over the next decade.
