Britain’s largest oil field could be producing millions of barrels a day by the autumn if Ed Miliband gives a green light to its plans, according to its owner.
The Energy Secretary must grant his approval for production to begin at the Rosebank site, which is off the coast of the Shetland Islands and is the North Sea’s largest undeveloped site.
The project’s owner, Ithaca Energy, said on Wednesday it is ‘entering the final stages of development towards first production’ – with the site forecast to generate up to 500million barrels of oil and gas.
Gas from Rosebank would be used in the UK and contribute to around 1 per cent of national needs.
But the oil would have to be exported elsewhere in northern Europe, as the UK no longer has the refinery capabilities to process it.
It comes just days after the industry group representing the UK’s manufacturers told Mr Miliband he must urgently approve the project amid concerns over a new energy crisis.
The outbreak of war in the Middle East has sparked fears over an energy crisis similar to the aftermath of Russia’s invasion of Ukraine in 2022.
Ed Miliband, the Energy Secretary, must grant his approval for production to begin at the Rosebank site, which is off the coast of the Shetland Islands
Make UK this week called for Government action, arguing that ‘historically high industrial energy costs are already preventing growth in UK manufacturing’.
The group urged Mr Miliband to approve production at Rosebank, as well as allow work to start at Jackdaw, another undeveloped gas field in the North Sea. Both sites are licensed but are awaiting approval to start drilling, which requires passing environmental tests on emissions.
Stephen Phipson, chief executive of Make UK, said: ‘Manufacturers are calling for the Government to act quickly to progress with the Rosebank and Jackdaw developments to mitigate energy costs and energy security because of the conflict in the Middle East.’
US President Donald Trump has also fiercely advocated for the UK to ‘open up’ the North Sea and dial down its renewable energy efforts in favour of oil and gas production.
Labour increased the level of the windfall tax on oil and gas company profits to 78 per cent and extended it until 2030 – as well as restricting new exploration licences.
Mr Miliband told the BBC last week: ‘New exploration licences in the North Sea, which some people are calling for, will not take a penny off people’s bills.’
