'Black gold' still at heart of Scotland's political debatepublished at 09:11 British Summer Time 27 September 2023

09:11 BST 27 September 2023

James Cook
Scotland editor

For more than half a century, North Sea oil has been at the heart of economic and political debate in Scotland.

The discovery of the "black gold" turned Aberdeen into the oil capital of Europe and fuelled the Scottish independence movement.

Critics of the UK's approach say it should have followed Norway's lead by investing revenue generated by the boom in a sovereign investment fund.

Now the industry has moved westwards into the stormy waters of the North Atlantic Ocean, the focus of the debate has switched to the environmental impact of drilling but those old arguments about economic benefit have been revived too.

For decades Shetland prospered handsomely from oil thanks to a deal the local council struck with energy firms to allow the construction of a terminal at Sullum Voe.

However, the oil from Rosebank will not be processed on Shetland but offloaded by tanker and sold on the international market.

Supporters say the project, run by the Norwegian state energy firm Equinor, will create hundreds of jobs and bring in billions of pounds in investment.

But critics say the biggest winner is Norway.

Image source, Reuters

This photo of Surfers Against Sewage was taken this summer in Aberdeen as the group took part in the Wave of Resistance protest.

Hundreds of demonstrators across the UK had gathered to protest against the planned development of the Rosebank oil and gas field.

Activists voiced their concerns over the impact of the drilling on marine life, saying developers would have to run a gas export pipeline through the Faroe-Shetland Sponge Belt, which is a UK Marine Protected Area (MPA).

Image source, PA Media

Henry Zeffman
Chief political correspondent

Labour would not revoke the Rosebank licence if the party wins the next general election, the BBC has learned.

A senior party source said that while Labour had opposed the plans for the oil field on cost and climate grounds, they would not revoke the development if they get into government because they did not want to cause uncertainty. That position may provoke criticism from figures on the Labour left who want the party to commit to a faster green transition.

Labour has previously said that if it wins the election, it would not grant new licences for oil and gas exploration.

The Liberal Democrats are not expected to make a comment on the licence, but a party source said that their position remains that Rosebank should not go ahead.

We've just heard from Gilad Myerson, the executive chairman of Ithaca Energy - a company with 20% stake on this project.

Speaking to BBC Radio 4's Today programme, Myerson said: "The objective is to make sure the emissions per barrel is as low as possible."

Asked about suggestions that most of the reserves could be exported, Myerson said that was "simply incorrect" and that most of the oil would be used within in the UK.

He went on to make the economic case for the project, saying it "will be providing over 1,600 jobs. It's going to be providing a significant amount of tax revenues for the treasury going forwards".

Image source, PA Media

The government has welcomed the regulator's decision to approve the Rosebank development.

Energy Security Secretary Claire Coutinho said the government was still investing in "world-leading renewable energy," but that oil and gas were still needed as part of the mix to reach net zero.

(Net zero means no longer adding to the total amount of greenhouse gases in the atmosphere in an effort to curb climate change.)

"It makes sense to use our own supplies from North Sea fields such as Rosebank," Coutinho said, adding that the government would continue to support the UK's oil and gas industry to underpin energy security, and grow the economy.

"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 [Russian President Vladimir] Putin," Coutinho said.

It's not just the Green Party who've criticised the plan.

Last month, 50 MPs and peers from all major parties raised concerns the oil field could produce 200m tonnes of carbon dioxide.

They wrote to then Energy Secretary Grant Shapps urging him to block Rosebank, adding that most of the cost of development would be shouldered by the taxpayer.

The letter was spearheaded by Caroline Lucas - mentioned in our post below - and urged the government to consider the damage to the UK's international climate leadership. It said that the science was clear about there not being any scope for new oil and gas infrastructure if global temperature rises were to stay within safe limits.

The MPs further expressed their concerns about the new oil and gas licenses being announced during parliamentary recess.

Today's decision is "morally obscene", Green Party MP Caroline Lucas has just said in reaction to the announcement.

Lucas says the current government "must be held accountable for its complicity in this climate crime".

She sets the news in the context of the last few months of "raging wildfires" and the hottest July on record.

The Green Party MP says the government's decision will "produce more than the combined CO2 emissions of all 28 low-income countries in the world".

Owners Ithaca Energy and Equinor previously said if production started in 2026, then Rosebank could account for 8% of the UK's total oil production between then and 2030.

It has been predicted that Rosebank could produce 69,000 barrels of oil a day at its peak, and about 44 million cubic feet of gas per day in its first 10 years.

Image source, .

Today's news comes after the government in July said it would issue hundreds of new licences for oil and gas exploration in the North Sea.

Permission has been given to owners Equinor and Ithaca Energy, following the acceptance of an environmental statement.

The oil and gas regulator, the North Sea Transition Authority (NSTA), said it had been approved "in accordance with our published guidance and taking net zero considerations into account throughout the project's lifecycle".

James FitzGerald
Live reporter

The UK's largest untapped oil field has been approved by regulators, despite widespread opposition.

Located 80 miles of west of Shetland, Rosebank is estimated to contain 500 million barrels of oil.

Last month 50 MPs and peers from all major parties raised concerns the field could produce 200m tonnes of carbon dioxide.

A spokesperson for the oil and gas regulator, the North Sea Transition Authority (NSTA), said: "We have approved the Rosebank Field Development Plan which allows the owners to proceed with their project."

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