The British government is preparing to make a decision on expanding oil and gas drilling in the North Sea, focusing on two major undeveloped fields, Rosebank and Jackdaw, located off the coast of Scotland. Prime Minister Andy Burnham and newly appointed Energy Secretary Miatta Fahnbulleh are reportedly considering approving these projects in a bid to enhance domestic energy production and address rising living costs this winter.

Sources close to the projects say there is an intention to expedite the approval process following the conclusion of a public consultation phase expected in the coming weeks. The consultations were initiated after courts ruled in January 2025 that the original consents for Rosebank and Jackdaw were unlawful due to insufficient environmental assessments, necessitating revised submissions by the developers. If approved in August, the fields could begin production as early as October, with infrastructure already in place and awaiting only governmental authorization.

While the immediate approval would not directly reduce consumer energy bills, some ministers argue that boosting domestic oil and gas output could strengthen the pound and lower economic costs broadly, potentially easing the pressure on household finances. Burnham has reportedly requested plans that include increased drilling at Rosebank and Jackdaw, along with the expansion of "tiebacks," pipeline systems that allow additional resource extraction near existing sites.

The projects have drawn mixed reactions within government and from external stakeholders. Before stepping down as Energy Secretary, Ed Miliband indicated support for the Jackdaw gas field, which lies roughly 150 miles off Aberdeen and has the capacity to supply gas to over a million homes during the winter, while he opposed the Rosebank oil field. Fahnbulleh, who took on the energy portfolio this week, previously led a think tank that recommended blocking Rosebank but has emphasized a pragmatic approach in recent public statements.

Protesters have gathered outside the Department for Energy, expressing concerns that developing the Rosebank field would exacerbate climate change and increase heat-related health risks. Their demonstration underscored ongoing tensions between environmental considerations and energy security needs.

The backdrop for these decisions includes volatile global energy markets. Recent geopolitical tensions, including threats of further strikes on Iran, have pushed oil prices above $100 a barrel for the first time in two months, prompting some Labour MPs to call for approval of the projects to secure stable energy supplies in a turbulent international environment.

Burnham, currently on a visit to Manchester’s No 10 North to discuss cost of living measures, has introduced a series of policies including cutting VAT on electricity bills and reducing bus fares to alleviate financial strain on households. However, questions remain about the funding and broader impact of these initiatives.

Labour’s 2024 manifesto committed to halting new oil and gas licenses, but officials note that Rosebank and Jackdaw were authorized in 2022 and 2023 respectively, and therefore do not conflict with this pledge. Supporters argue that developing these fields aligns with manifesto commitments while supporting jobs and skills in energy production. Local business groups, including Aberdeen & Grampian Chamber of Commerce, view approval of the projects as a critical test of the government’s strategy on energy security and investment readiness.