A New Energy Wealth Fund to be established by the Chancellor with a £2bn 'downpayment' to reinvest oil and gas revenues into the climate transition.

To square the circle, whereby the Government wants to open oil and gas licences but is fearful that it will be perceived as ‘non-green’ the fund can be filed under ‘the end justifies the means’ to some and ‘unacceptable’ to others.

The announcement comes immediately after the approval of the Jackdaw gas field (Rosebank remains on a knife edge). Jackdaw is expected to increase domestic gas production by around 6 per cent at its peak and adding an estimated £2.9bn to the UK economy.

The UK’s gas supply comes from a range of sources: 42 per cent is sourced from the UK continental shelf; Norway’s continental shelf provides 37 per cent; LNG accounts for 20 per cent; and Interconnectors supply 1 per cent (figures calculated from a 5-year average between 2021 to 2025).

Prime Minister Andy Burnham said: “We’re committed to moving towards renewable energy and reaching net-zero by 2050. But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea. We’re also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term.”

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