The UK government has just approved the Jackdaw gasfield in the North Sea, clearing the way for production to begin as early as this winter.

Jackdaw, around 150 miles east of Aberdeen, could account for roughly 6.5% of UK North Sea gas production at its peak and will connect to existing infrastructure at the Shearwater platform.

But what will this actually mean for households and public finances? Will Jackdaw lower energy bills? Probably not by any noticeable amount.

Read more: Granting a new gasfield licence does not guarantee energy security

Producing more British gas may sound as though it should lower prices. But North Sea gas is not reserved for British consumers at a special domestic price. It is sold into a market connected to Europe and influenced by international gas prices. This was clear following Russia’s invasion of Ukraine. Britain continued producing gas domestically, yet consumers were still exposed to soaring international wholesale prices.

According to one analysis, even if Britain maximised North Sea production and returned all resulting government revenues to households, the average annual saving would be no more than £82. Jackdaw is one field, so its effect would be small.

Will this new gas........

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