Oil
UK warm homes plan offers better returns than new oilfields
Research indicates home insulation and heat pumps would generate more jobs and economic growth than the Rosebank oilfield.
Key points
- E3G research suggests a £15bn warm homes plan would create 50,000 jobs compared to 1,100 from Rosebank.
- The proposed insulation initiative could reduce household energy bills by £1bn annually.
- Questions remain over UK tax revenues and potential decommissioning liabilities from North Sea drilling.
What happened
A study by the thinktank E3G suggests that investing in home insulation and heat pumps across the United Kingdom would yield greater economic and employment benefits than developing new fossil fuel reserves such as the Rosebank oilfield, according to The Guardian.
The findings emerge as the UK government weighs decisions on the Jackdaw gasfield and the Rosebank oil development. While Labour's 2024 manifesto included a pledge to halt new oil and gas licensing, projects already in the pipeline could proceed as exceptions. Ten major unions and numerous lawmakers have opposed the Rosebank project.
Why it matters
The E3G analysis indicates that a £15bn warm homes plan could slash £1bn a year from household energy bills, boost the economy by £1.6bn annually, and support roughly 50,000 jobs. By contrast, the Rosebank development west of Shetland is projected to create about 1,100 direct and indirect jobs, primarily concentrated in the North Sea and among specific corporate entities.
Critics note that new North Sea extraction will not lower domestic fuel prices, as oil and gas are traded globally. Furthermore, WWF and Uplift research highlights potential government tax losses once drilling concessions and estimated decommissioning liabilities of up to £12bn are factored in. Industry representatives, however, argue that upcoming projects will secure billions in private investment and tax revenues over the coming decade.
What comes next
Energy Secretary Miatta Fahnbulleh stated that a regulatory decision regarding the Jackdaw gasfield is imminent, while determinations for Rosebank will require additional time. Meanwhile, the Department for Energy Security and Net Zero has not issued formal commentary regarding the E3G findings or the future trajectory of the warm homes initiative.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
