What is The UK Government’s Guidance on Oil & Gas Projects?

Burning oil and gas releases significant amounts of CO₂ and other GHGs, contributing to global warming. As a result, the oil and gas industry faces mounting pressure to improve its sustainability, reduce emissions and decrease its impact on the environment.

In line with this drive, the UK Government has published guidance on how it will consider new applications for oil and gas projects.

As part of this guidance, new environmental impact assessments will have to be published, taking emissions released as well as produced into account.

The UK Government’s project plan

Oil and gas are finite resources and their extraction is becoming more challenging and costly as reserves diminish.

Under the new guidance, operators will have to draw up new environmental impact assessments that take emissions released from burning oil and gas into account, not just the emissions from production.

This move will determine whether production can go ahead in the Scottish fields, Rosebank and Jackdaw. However, it gives no indication as to whether ministers would give their approval.

Energy Minister Michael Shanks says the guidance provides clarity on the way forward for the North Sea oil and gas industry. But climate campaigners have been reported as suggesting the changes will have minimal impact on the UK's reliance on imported fossil fuels.

"This new guidance... marks a step forward in ensuring the full implications of oil and gas extraction are considered for potential projects and that we ensure a managed, prosperous and orderly transition to the North Sea's clean energy future, in line with the science,” says Michael, who is Under-Secretary of State at the Department for Energy Security and Net Zero.

"We are working with industry, trade unions, local communities and environmental groups to ensure the North Sea and its workers are at the heart of Britain's clean energy future for decades to come, supporting well-paid, skilled jobs, driving growth and boosting our energy security."

Scottish Scope emissions

New guidance has been introduced following a landmark Supreme Court ruling last year, which found that Surrey County Council should have considered the full climate impact of burning oil from new wells. 

Previously, environmental assessments only accounted for emissions from the extraction process, excluding the GHG released when the fuel is eventually used – Scope 3 emissions. 

In January 2025, the Court of Session in Edinburgh ruled this approach should also apply retrospectively to the Rosebank and Jackdaw projects. 

Shell’s Jackdaw gas field, located in the North Sea, was originally approved by the former UK Conservative government and the industry regulator in summer 2022. 

Approval for the Rosebank oil development, 80 miles west of Shetland, followed in autumn 2023. 

Lord Ericht ruled that while preparatory work on both sites may continue, oil and gas extraction cannot begin without new consent based on updated emissions assessments.

Climate guidance on oil and gas

The Offshore Petroleum Regulator for Environment and Decommissioning and the North Sea Transition Authority had paused decisions on new drilling and existing licences while awaiting clarity from the UK government. 

With new guidance now published, offshore developers can once again apply for consent to extract oil and gas from already-licensed fields. 

Energy Secretary, Ed Miliband, and the regulator will reconsider these applications, this time factoring in Scope 3 emissions. 

Ed has previously called the Rosebank licence "climate vandalism". 

The UK government says each project will be assessed on its environmental impact, balanced against economic and other relevant considerations on a case-by-case basis, however no final decisions are expected until the end of summer. 

John Swinney, First Minister, says that the new approach aligns with his government’s position that all emissions must be considered when making future project decisions.

Climate groups warn against rosebank

There is growing public demand for greater transparency and accountability from the industry regarding its environmental performance.

"In the case of the Rosebank oil field, which Equinor can now seek reapproval for, it is overwhelmingly obvious that the project is incompatible with the UK's climate commitments,” says Tessa Khan, Executive Director of the climate campaign group Uplift.

"Whether or not this government then follows the science and rejects Rosebank will be a real test of its climate credibility."

Shell spokesperson says: "We are reviewing today's guidance and remain committed to delivering Jackdaw, which is a nationally important energy project and supports the government's growth agenda,

"Jackdaw would provide enough fuel to heat 1.4 million UK homes at a time when the UK remains reliant on imported gas to meet its energy needs."

Equinor comments: “We are currently reviewing today’s announcement,”

“We remain committed to working closely with all relevant stakeholders to advance the Rosebank project.

“We welcome clarity and can confirm that we will submit a downstream end user combustion emissions (Scope 3) assessment in full compliance with the government’s new environmental guidance.”

Greenpeace UK supports the move to include Scope 3 emissions in assessments but warns that approving Rosebank would be a "political sleight of hand" benefiting oil companies. 

"Real energy security and future-proofed jobs for energy workers can only come through homegrown, cheap renewable energy, and that's what ministers should focus on,” explains Mel Evans, Greenpeace’s Head of Climate.

"The UK has just been hit by major droughts, wildfires and ocean heatwaves. 

"Rosebank alone could release as many planet-heating emissions as 56 coal plants running for a year. 

“Ed Miliband was right to say approving Rosebank would be climate vandalism, he should remain true to his word."

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE. 

Discover all our upcoming events and secure your tickets today.

Sustainability Magazine is a BizClik brand