Landmark Supreme Court ruling challenges UK oil and gas projects – implications for future drilling

The Supreme Court has made a landmark ruling that could have significant implications for future oil and gas projects in the UK. The court ruled that a local council, in this case Surrey County Council, should have considered the full climate impact of burning oil from new wells, not just the impacts from constructing the wells themselves.

The case was brought against Surrey County Council by Sarah Finch, on behalf of campaigners, challenging the planning permission given to the Horse Hill oil well in Surrey to expand its operations in 2019. The Supreme Court judges did not rule that the council should reject the proposal for new oil wells, but they did rule that the council should have considered the downstream emissions from burning the oil produced by the wells.

This ruling sets a precedent for future oil and gas projects in the UK, as companies will now have to consider the emissions from burning the oil products when looking at new projects. The Horse Hill site is expected to produce 3.3 million tonnes of crude oil over the next 20 years, which would result in over 10 million tonnes of CO2 emissions if burned.

The chief executive of UK oil and gas plc, the company behind the Horse Hill project, expressed confusion over the ruling but stated that the company’s focus has shifted towards hydrogen storage in recent years. The company will now work with Surrey County Council to amend its planning application to ensure future production falls below the levels at which an environmental assessment is required.

Campaigners believe that this ruling could also affect other ongoing legal challenges of new projects in the UK, such as the Rosebank oil field and the proposed coal mine in Whitehaven in Cumbria. They see this ruling as a blow to fossil fuel lobbyists and a step towards meeting the UK’s carbon reduction targets.

Ms. Finch’s victory in this case marks the end of a five-year legal battle on behalf of local residents, supported by environmental campaigners Friends of the Earth and Greenpeace. The ruling could also have implications abroad, as UK environmental assessment laws are based in part on European law.

Overall, this ruling highlights the growing importance of considering the full climate impact of fossil fuel projects and could signal a shift towards more sustainable energy practices in the UK and beyond.