Aberdeen & Grampian Chamber of Commerce (AGCC) has urged ministers to deliver swift approvals for the Jackdaw and Rosebank developments, warning that the UK's energy industry cannot afford further uncertainty following BP's decision to market its North Sea business.
The Chamber has submitted formal responses to the Offshore Petroleum Regulator for Environment & Decommissioning (OPRED), arguing that environmental assessments of both projects must consider not only the impacts of domestic production but also the environmental and economic consequences of replacing UK energy with higher-emissions imports.
The submissions come just days after BP announced it is seeking a buyer for its North Sea business, a move AGCC says underlines the urgent need to restore investor confidence in the UK Continental Shelf.
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: 'BP's announcement should serve as a wake-up call. It is another stark reminder of what prolonged policy uncertainty means in practice. Investment goes elsewhere, businesses lose confidence and the UK's industrial capability is gradually eroded.
'The UK will continue to require oil and gas throughout the energy transition. The choice is whether that demand is met by lower-emissions domestic production, supporting British jobs and investment, or by importing energy from overseas with a higher carbon footprint.
'Our consultation responses make the case that environmental assessments should reflect those wider realities. They should consider not only the emissions from production, but the consequences of refusing domestic developments while demand remains.
'Jackdaw and Rosebank are strategically important projects. Together they represent almost £29 billion of economic value, thousands of jobs, more than £1 billion in tax revenues during this Parliament and the highly-skilled supply chains that will also deliver offshore wind, carbon capture and hydrogen.
'Our own Energy Transition Survey found that 93% of businesses believe there remains a future for the North Sea if the right fiscal and regulatory framework is in place. What they consistently tell us is that uncertainty is now the single biggest barrier to investment.
'The Prime Minister has spoken about taking a pragmatic approach to the North Sea. Now is the time to demonstrate that pragmatism by providing timely, evidence-based decisions on Jackdaw and Rosebank, replacing the Energy Profits Levy with the promised Oil & Gas Revenue Levy, and restoring the stable long-term investment environment our industry needs.'
AGCC's submissions argue that both developments should be assessed within the context of the UK's continuing energy needs and its legally binding commitment to net zero. The Chamber says evidence submitted by the project operators shows Jackdaw gas would be significantly less carbon intensive than imported LNG, while Rosebank's production emissions are expected to be substantially below the global average for oil production.
The responses also highlight that Jackdaw and Rosebank are expected to generate £28.7 billion in economic value, support more than 3,500 construction jobs, sustain around 880 long-term operational roles, create more than 125 apprenticeships and generate approximately £1.4 billion in tax revenues during the current Parliament.
They conclude that both environmental statements support positive determinations from OPRED.
You can read the Chamber's Jackdaw submission here, and its Rosebank submission here.
Source: AGCC
