The UK approves the largest oil exploration field in the North Sea in years world

The UK has agreed to develop one of its largest new oil and gas exploration projects in years, the Upstream Oil and Gas Project Equinor’s Rosebank field in the North SeaSaying that energy security is the country’s priority, despite opposition from environmentalists.

• Oil closed higher, with WTI at $90 per barrel; Fear of interest rates does not overshadow tight supply
• Haddad advocates oil exploration in the tropical margin

Wednesday’s announcement came after Prime Minister Rishi Sunak weakened the country’s climate targets last week, in a move critics said could also encourage other countries to scale back their climate ambitions.

Energy Security Minister Claire Coutinho said the Rosebank field would be less emissions-intensive than older oil and gas projects.

She added: “We will continue to support the UK oil and gas sector to support our energy security, grow our economy and help us transition to cheaper and cleaner energy.”

The basis of the plan to make Rosebank less emissions-intensive is the electrification of the extraction process.

Norwegian group Equinor said that electrification of the field, located west of the Shetland Islands and expected to begin production in 2026-2027, would only take place in 2030. Environmental activists called on the government to halt development at Rosebank, saying the project conflicted with its objectives. A plan for an economy free of greenhouse gas emissions.

But Sunak threw his support behind the North Sea project in July, saying the UK needed new domestic fossil fuels to improve energy security, and that oil and gas would remain part of the country’s energy mix even in 2050.

The Rosebank field, which is relatively small in the global context, is expected to produce 300 million barrels of oil during its operation. The main opposition Labor Party, which wants to focus on clean energy, said it would respect all licenses granted before the deal. Upcoming elections, including Rosebank.