Oil industry lobbyist worked in department which approved Jackdaw gas field
UK government approved the Jackdaw gas field, expected to produce 35.8 million tonnes of CO2. The decision was made by a department that employed an oil industry lobbyist from 2024 until last month. Shell, a beneficiary of the decision, is a member of the lobby group that placed the lobbyist. Labour had pledged to ban new drilling licenses, but faces lobbying pressure. Shell's profits have increased over the past year.
How this was made
The 30-second read
Why it matters
The approval signals continued government support for offshore gas development, despite political promises to curb new drilling.
Market read
The decision could boost UK oil & gas equities, particularly Shell and BP, while raising scrutiny on lobbying practices.
What to watch
Potential environmental opposition and future carbon pricing could dampen long‑term profitability.
Background
The Department for Energy Security and Net Zero approved drilling for the Jackdaw gas field, a project linked to Shell and BP, after a lobbyist from Fuels Industry UK worked in the department.
Ticker impact
Shell is listed as one of the two companies benefiting from the newly approved Jackdaw gas field.
likely upside as the market prices in additional gas output
Regulatory permission for a sizable North Sea field is a material catalyst for Shell's upstream earnings.
BP is the other company benefiting from the Jackdaw gas field approval.
likely modest upside as investors factor in added reserves
Similar to Shell, BP's exposure to the field creates a forward‑looking earnings benefit.
Market effects
Adds to North Sea gas supply outlook, supporting the broader oil & gas sector.
May lift UK energy stocks as the field is domestically located.
Contributes to global gas supply expectations, modestly influencing commodity markets.
Counterpoint
If the field faces cost overruns or regulatory delays, the initial upside could be overstated.
Key entities
- governmentDepartment for Energy Security and Net Zero
UK government department that granted the drilling permission.
- industry groupFuels Industry UK
Lobby group representing downstream oil interests, placed a lobbyist in the department.
