Thank you for contacting me about the Rosebank oil field.
I am pleased that the Government has committed to not bringing to an end any of the oil licenses that are currently in place, including Rosebank.
However, I am concerned that the Government's decision not to fight a legal challenge against the decision to grant consent to drill in the oil and gas fields of Shetland and Aberdeen, may create more delay and additional costs.
I am aware that in September 2023, the North Sea Transition Authority (NSTA) granted development and production consent for the Rosebank field, north-west of Shetland. I am informed that the decision to approve the Rosebank development follows extensive scrutiny by regulators, including a full environmental impact assessment and a public consultation.
Developments such as Rosebank will help strengthen the UK’s energy security and support the transition to net zero. I understand that Rosebank is expected to be significantly less emissions-intensive than previous developments, which will help the UK to reach its ambitious targets for net zero. Its operator, Equinor, estimates that the amount of carbon dioxide from oil produced onshore will be around 60 per cent of the level of oil produced offshore. The more energy options we have available to us, the less the costs of fighting climate change are passed on to the tax-payer.
Further, the Rosebank project will also help create new jobs and opportunities. I understand from its operator that Rosebank will provide £6.3 billion of investment in UK-based businesses, support around 400 UK-based jobs, and add around £24 billion to the UK economy across the project’s lifetime.
We have to recognise that further action from us at potentially great short term cost will only take us so far. The current and future major contributors to CO2 emissions (which cause these extreme weather events) are countries like America, China and India, with China planning to open two new coal power plants each week and their emissions expected to peak in 2030. This is where the focus needs to be.
Thank you again for taking the time to contact me.
