PF Global has released its first economic impact report for Adura, the joint venture between Shell and Equinor, exploring different scenarios for the future of North Sea oil and gas and the impacts on the UK economy.
The report, titled “The North Sea Dividend: What Britain Gets Back”, finds that continuing to use North Sea oil and gas could generate over £46bn in GVA for the UK economy in the most favourable scenario, compared to just £15bn in the least favourable.
Strong support for domestic production could generate an additional 14,000+ jobs across the supply chain, or approximately half that in scenarios showing low levels of support.
For Jackdaw and Rosebank fields specifically, the economic loss of “oil left in the ground” if only Jackdaw is approved could reach upwards of £10bn.
The report demonstrates the size of the prize for the UK economy, and the risk of policy environments that are unfavourable. North Sea assets present a huge opportunity for the UK economy and this report demonstrates what this could look like up to 2050, dependent on policy decisions taken in this parliament.
The report covers economic impacts, fiscal impacts, and emissions modelling.
