The approval of the Jackdaw gas field, the largest undeveloped gas field in the UK, comes as the country continues to rely heavily on gas for heating, cooking, and electricity. Professor Underhill noted that 23 million homes, or 85% of the housing stock, depend on gas for heating and cooking, while gas-fired power stations supplied over a quarter of the UK's electricity last year, meeting significant demand during peak times.
He highlighted that domestic gas production now meets just over two-fifths of the UK's supply, necessitating imports for the remaining three-fifths, primarily from Norway or as Liquid Natural Gas (LNG) largely sourced from the United States. "Given our continued dependence on gas, Jackdaw’s environmental approval is an important moment for the industry and the country," Professor Underhill stated.
With the Jackdaw platform already in position, it is set to supply gas for homes and electricity needs this winter. The field is expected to produce gas for the next decade, equivalent to the needs of half of Scotland's homes and 6% of UK supply. Professor Underhill emphasised the significance of Jackdaw passing the Offshore Petroleum Regulator for Environment & Decommissioning (OPRED)'s climate compatibility test, setting a precedent for other UK gas discoveries.
The government's decision is expected to protect jobs, support the supply chain, enhance energy security, generate new tax revenues to address the cost-of-living crisis, improve the balance of payments, and ensure lower emissions compared to imported LNG. However, Professor Underhill pointed out that outstanding questions regarding oil projects like Rosebank and Cambo, the Energy Profits Levy (EPL), and future licensing opportunities remain, impacting sector confidence and investment.
