A judge has blocked Britain’s two biggest offshore oil and gas developments from producing any fossil fuels by quashing their production permits over climate change concerns. The Telegraph has more.
The judge, Lord Ericht, banned production at the Jackdaw gas and Rosebank oil projects in the North Sea, operated by Shell and Equinor respectively, after ruling that “the private interest of members of the public in climate change outweigh the private interest of the developers”.
The decision in the Scottish Court of Session marks a victory for environmental groups Greenpeace UK and Uplift, which are campaigning against any further development of North Sea oil and gas.
However, it is a major blow for Shell, whose Jackdaw gas field was set to produce 6-7% of the UK’s gas needs, and Equinor, whose Rosebank project would generate nearly £7 billion of investment and hundreds of millions of pounds in taxes.
The judicial review into Jackdaw and Rosebank followed a Supreme Court ruling in a separate case brought by the activist Sarah Finch, who said that the emissions generated by burning fossil fuels should always be considered when approving new drilling sites.
Equinor and Shell have both vowed to continue development work on the two projects, while also submitting applications for new permits that take account of future emissions by their customers.
However these would ultimately have to be approved by Ed Miliband, the Energy Secretary, who has made clear his opposition to new oil and gas projects.
The last Government issued permits for Jackdaw and Rosebank without considering future emissions.
Shell and Equinor both conceded these permits are unlawful in light of the Supreme Court decision, but argued that having started work in good faith and having spent £800 million on Jackdaw and £2 billion on Rosebank, they should be allowed to continue.
Judge Ericht’s ruling gives them part of what they wanted. It means they can carry on developing the two projects. However, they are banned from producing any oil or gas unless the Government approves a new application.
Separately, Mr Miliband has held a consultation on the impact of the Finch ruling and plans to issue new guidance for oil and gas firms seeking new permits to “deliver economic growth, and meet the Government’s climate obligations”.
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