UK Government Rebuffs Industry Call for Increased North Sea Production
The UK government has firmly dismissed a stark warning from the energy trade body Offshore Energies UK, which argued that failing to ramp up homegrown North Sea oil and gas production will leave the nation increasingly dependent on imports amid rising global instability. Ministers have instead emphasised the urgent need to escape the volatile fossil fuel markets.
Industry Warns of Growing Reliance on Imports
Offshore Energies UK has stated that the UK urgently requires a greater supply of domestically produced energy to shield consumers from global volatility and higher emissions. This warning comes as the conflict in the Middle East enters its fourth week, triggering the most significant oil and gas supply shock in market history and causing UK gas prices to more than double within a month.
The group's flagship annual report highlights that the decline of the North Sea oil and gas basin means the UK's reliance on gas imports—sourced from countries like the US and Qatar—is projected to surge from about 14% last year to over a quarter by 2030, and nearly half by 2035. It further notes that sourcing oil and gas from the North Sea would result in a lower emissions footprint compared to importing liquefied natural gas via super-chilled tankers from overseas.
Government Emphasises Transition Away from Fossil Fuels
In response, a government spokesperson rejected the industry's call for more support to slow the North Sea's decline, stating: "Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills." They added that regardless of origin, oil and gas are sold on international markets, making the UK a price taker, and the only true protection from price spikes is to get off the rollercoaster of fossil fuel markets.
Industry Leaders Advocate for Balanced Energy Strategy
David Whitehouse, chief executive of Offshore Energies UK, argued that recent events demonstrate how quickly energy markets can tighten and cargoes can be diverted. He asserted: "Energy security means backing homegrown oil and gas alongside renewables." He called for a stable new tax regime to reduce reliance on volatile imports, protect skilled jobs and supply chains, and ensure decarbonisation while keeping energy secure and affordable.
Enrique Cornejo, the group's energy policy director, highlighted that the UK continues to rely on oil and gas for about 75% of its energy needs, with hydrocarbons expected to meet roughly a fifth of primary energy demand by 2050 under net zero plans. He warned against offshoring emissions, stating: "Because of how accounting of carbon emissions works for every country, it would be very easy for us to just say we will not produce our energy in the UK, and we're just pushing that problem elsewhere."
