New oil field twice the size of Cambo looms as companies relish government tax break: Campaigners vow to fight Rosebank at every stage 

A new oil field twice the size of Cambo could be a step closer to government approval, as fossil fuel giants continue to capitalize on a government tax loophole.

Oil company Equinor has progressed its application for a permit to extract oil from the Rosebank field, 80 miles northwest of Shetland. Phase one of the development contains fossil fuels equivalent to 324 million barrels of oil, according to Rystad. The vast majority of this is oil, which would generate approximately 126 million tonnes CO2 when burned, well over a third of the annual emissions of the UK as a whole [1].

In response to the ongoing energy crisis and cost of living crisis, the UK government announced it would introduce a windfall tax on energy companies’ bumper profits. But it created a gaping loophole by granting a generous tax break on new fossil fuel investments. No such incentive was granted for new renewables projects, despite this being the cheapest form of energy which could significantly ease bills for UK households.

The move comes after the UN Secretary António Guterres urged governments to tax oil companies’ excessive profits, and one week after Greenpeace launched a legal battle to challenge the UK government’s approval of a new gas field, Jackdaw.

Campaigners fiercely oppose the Rosebank project and have pledged to fight it at every stage.

Philip Evans, Greenpeace UK oil and gas transition campaigner, said: “This is what happens when the government helps out oil companies with cushy tax breaks.

“Meanwhile UK households suffer, and the climate crisis rages on, triggering a national emergency and causing death and destruction in the Global South. It’s shameful.

“If Rosebank goes ahead, it will do nothing to help drivers or households with rising costs, because the oil doesn’t belong to the UK and goes to a global market.

“The government is already facing two legal battles after approving new fossil fuel projects with no proper assessment of climate impacts. We will fight Rosebank every step of the way, and urge the government to crack on with quick, cheap solutions that will actually help in the cost-of-living crisis and the climate emergency – renewables, home insulation and heat pumps.”