Shell (SHEL) to Move Ahead With the Jackdaw Gas Field Project
Shell plc SHEL recently declared that it has made a final investment decision to move forward with the development of the Jackdaw gas field in the British North Sea. This project, which has been under opposition by environmental groups, can provide more than 6% of the United Kingdom’s gas output by mid-decade.
The British energy major got the necessary regulatory approval from authorities after it altered the project’s environmental development plan. The development had initially been rejected by regulators.
The final investment decision for Jackdaw comes at a time when the U.K. government is pushing to boost domestic energy production as it pursues to find substitutes for Russian imports following Moscow’s invasion of Ukraine, which has led to gas prices soaring and countries gasping for supply.
Shell’s Upstream Director, Zoe Yujnovich, mentioned that Shell is committed to providing secure and stable supplies of energy for customers efficiently and economically. “Investments like Jackdaw are consistent with the UK’s North Sea Transition Deal and Shell’s Powering Progress strategy, providing the energy people need today while serving as the foundation for investments in the low carbon energy system of the future,” he added.
The London-based firm stated that the Jackdaw project is part of its larger plan to invest up to £25 billion in the U.K. energy system within the next decade, with the intent of boosting the development of low-carbon energy sources, products and services, including electric vehicle charging stations and offshore wind farms.
SHEL stated that the Jackdaw development would make sure that the overall decline in the U.K. North Sea production is gradual rather than being too steep.
Discovered in 2005, the Jackdaw field stretches across three blocks in a water depth of about 78 meters. The field is situated 30 kilometers southeast of the Shearwater platform and beside the U.K./Norway median.
Shell is one of the primary oil supermajors, a group of U.S. and Europe-based big energy multinationals with operations spanning worldwide. The company is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. SHEL operates as an energy and petrochemical company. Shell plc was formerly known as Royal Dutch Shell.
Shell currently carries a Zacks Rank #2 (Buy). Investors interested in the energy space might also look at the following companies – Murphy USA MUSA, CVR Energy CVI and TotalEnergies TTE. While MUSA and CVI each sport a Zacks Rank #1 (Strong Buy), TTE carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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