The planned development of the Rosebank oilfield in the North Sea by Norwegian firm Equinor has become a subject of intense debate and contention. As the UK seeks to transition towards greener energy sources, the project's potential impact on the environment and climate pledges has drawn criticism from environmentalists and politicians alike. Nevertheless, Equinor is striving to gain approval for the project by highlighting the concept of low-carbon oil, and a wind farm development in the area could play a crucial role in reducing its carbon footprint. But can Equinor win the support it needs, considering the project's scale is significantly larger than the controversial Cambo oilfield development?

Equinor took control of Rosebank in 2019 and is leading the field's development in partnership with other companies. Situated 130 kilometers west of the Shetland Islands in the North Sea, off Scotland's coast, Rosebank forms a crucial part of the UK government's North Sea Transition deal. This deal aims to ensure energy security by continuing the development of oil and gas resources in the North Sea while simultaneously expanding renewable energy capacities. The anticipated timeline for Rosebank's first oil production is 2027, with transportation to refineries facilitated by shuttle tankers, and gas exportation through the West of Shetland Pipeline system. The project is projected to contribute £8.1 billion to the UK economy, with £6.3 billion invested in domestic businesses and the creation of around 1,600 jobs during the peak construction phase in 2025.

Equinor's CFO, Torgrim Reitan, has highlighted the project's significance, emphasizing its potential tax efficiency and substantial industrial benefits. If approved, the Rosebank project could bolster the UK's energy security amidst uncertainty and rising oil and gas prices. Equinor's pitch for low-carbon oil is based on deploying innovative technologies, including a redeployed, refurbished Floating Production Storage and Offloading vessel (FPSO) connected to a subsea production system that can be electrified from shore. This electrification is projected to reduce Rosebank's emissions by over 70 percent, resulting in a CO2 output of approximately 3kg per barrel, significantly lower than the North Sea average of 20kg.

Despite these assurances, the 300-million-barrel Rosebank project has faced fierce opposition from some politicians and environmentalists. Chris Skidmore, a Conservative politician, expressed his concern, stating that approving Rosebank would undermine the UK's claims to climate leadership and contradict efforts to achieve a net-zero Britain by mid-century. Climate activists are skeptical about the concept of low-carbon oil, asserting that it relies on renewable energy operations to offset emissions and that the oil from Rosebank will primarily be exported, offering little to boost the UK's energy security.

In a potential breakthrough for low-carbon oil, a new onshore wind development in Shetland could provide the electricity needed to power Rosebank, should the project be approved. Equinor and its partners are optimistic about the greenhouse gas reduction potential offered by electrification through the Shetland electrical grid, which would be powered by wind farms in the region.

The final approval for the oilfield rests with the UK's energy secretary, Grant Shapps, and several influential politicians have already indicated the importance of a local oil and gas supply chain for the country's mid-term energy security. Prime Minister Rishi Sunak argued that investing in UK oil and gas remains economically sensible, considering the nation's continued reliance on fossil fuels for the foreseeable future.

As the standoff continues between political factions, climate activists, and proponents of oil and gas development, the decision to proceed with new North Sea projects will be a delicate balancing act. While these developments could support mid-term energy security and attract investments, they also present a challenge to the government's climate commitments and green transition efforts.