A new study by the thinktank E3G indicates that insulating homes and investing in heat pumps would be more effective in reducing the cost of living, creating jobs, and boosting the UK economy than drilling for new oil.
The government's £15bn warm homes plan, which aims to insulate up to 5m homes, is currently facing potential cuts as ministers seek budget savings. E3G's research suggests that fully implementing this plan could reduce household energy bills across the UK by £1bn a year, with a focus on low-income households. It also projects a £1.6bn yearly boost to the economy and the creation of about 50,000 new jobs, spread across thousands of small businesses.
Conversely, analysis found that the Rosebank oilfield, located west of Shetland, would create approximately 1,100 direct and indirect jobs, concentrated in the North Sea and within two companies. The energy secretary, Miatta Fahnbulleh, stated on Wednesday that a decision on the Jackdaw gasfield in the North Sea is "imminent," with a decision on Rosebank expected to take longer.
Experts have previously noted that new North Sea oil and gas would not lower fuel prices or ease UK supply constraints, as these commodities are traded on international markets. While proponents of drilling cite economic boosts and tax revenues, related research by WWF and Uplift suggests tax revenues may be limited due to expected concessions for drillers.