Industry groups in north-east Scotland have said the decision on the Jackdaw gas field is “hugely welcome”, but the pending decision on the Rosebank oil field is “every bit as vital”.
Meanwhile, the Scottish Government has called for the Treasury’s income from oil and gas to be placed in a “future generations fund”.
Months of speculation about the Jackdaw offshore development, which is in the North Sea 150 miles to the east of Aberdeen, were brought to an end by the decision on Wednesday morning.
Groups representing the offshore industry have long called for the UK Government to approve the new development, stressing the economic and energy security benefits.
However, environmental groups say there is no case for new drilling if climate commitments are to be met.
Industry groups have stressed the economic benefits (Andrew Milligan/PA)
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Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said: “This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.
“Jackdaw is 99.9% complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks.
“This is a direct, tangible boost to the UK’s energy security at a time when it matters most.
“Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas.”
He added: “But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the north east of Scotland.
“Government must now move with the same urgency and pragmatism and get Rosebank over the line without further delay.”
The Scottish Tory leader welcomed the decision (Jacob King/PA)
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Scottish Tory leader Russell Findlay said the Jackdaw decision was “a victory for Scotland’s oil and gas workers”.
He added: “Andy Burnham must now stop dithering and give Rosebank the green light without any further delay.
“Anything less would risk our energy security, harm investment, and be a kick in the teeth for families whose livelihoods depend on it.”
Jack Middleton, SNP MSP for Aberdeen Central, added: “Approving Jackdaw is the right decision, but fundamental questions remain unanswered.
“Andy Burnham’s silence on Rosebank is deafening, and there is no assurance that the establishment of a North Sea Wealth Fund will benefit Scottish industry alone.
“Labour has kept the workforce waiting while it stalled the Jackdaw decision for its own political convenience.
“Now workers are being dragged through the same uncertainty again with Rosebank.”
Stephen Gethins called for a fund to be set up (Liam McBurney/PA)
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The Scottish Government’s energy minister Stephen Gethins said the economic benefits of the Jackdaw field must be felt in Scotland.
He said: “Perhaps the most significant failure of the past half-century of Westminster energy policy has been the failure to establish a futures fund.
“The UK has been almost the only country to discover oil and gas but not deliver a long-term benefit from a finite resource. That must change today.
“It is crucial that all further income from oil and gas resources taken by the UK Treasury is placed in a future generations fund. That would deliver a long-term benefit from a limited resource.”
He continued: “I am sure that the Prime Minister will agree that it is absolutely critical that if any new production goes ahead, then the economic benefits should be felt in Scotland and should be used to bring energy bills down, rather than flowing to plug more short-term spending gaps by the Treasury.
“The UK Government must also replace the Energy Profits Levy with a fair system that protects jobs, energy security and investment in our energy sector.”
Angela Hepworth, CEO of Scottish Renewables, said global events have brought the need for domestic energy into “sharper focus”.
She said: “Today’s decision must now be matched by a renewed drive to deliver our long-standing clean energy ambitions.
“The UK needs a pragmatic approach to its energy future that secures investment, jobs and energy supplies in a volatile world.”
She added: “As the global shift towards electrification continues, the case for homegrown clean energy is stronger than ever.”