Debate is intensifying in the British government over Rosebank, the largest undeveloped oil field. Chancellor John Healey is in favour of approving the project, while Energy Minister Miatta Fahnbulleh is leaning towards rejecting it.
According to sources, Healey supports granting permission to extract around 500 million barrels of oil 80 miles north-west of the Shetland Islands. He hinted at this when speaking of the contribution of oil and gas revenues to a new energy wealth fund.
Fahnbulleh, who takes the final decision, recently approved the smaller Jackdaw gas field. On Rosebank, however, she is reportedly minded differently: most of the oil would go for export, and carbon emissions would be around seven times higher.
The minister stresses that each project must be assessed individually, taking into account climate commitments and carbon budgets. She has already stated that the final word rests with her, not with Prime Minister Andy Burnham or the chancellor.
A decision on Rosebank is expected before the end of the year. Earlier, a court in Edinburgh overturned the previous permits for both fields, pointing to the need to take into account emissions from burning the extracted fuel.
A possible rejection would be a victory for climate activists and a blow to the North Sea industry. Approval, meanwhile, could cause tension within the Labour cabinet — Foreign Secretary Ed Miliband also opposes the project.
Which balance between the economy and the climate will prove decisive for Fahnbulleh?
For now, all sides stress that the decision must be well-founded and protected from legal challenges. Fahnbulleh has already promised not to drag out the process, but to act strictly by the rules.
