An industry body has warned that the UK must 'urgently' boost domestic oil and gas production from the North Sea to enhance energy security and reduce emissions. The report by Offshore Energies UK (OEUK) argues that gas extracted domestically has a lower carbon footprint than imported liquefied natural gas (LNG).
The OEUK's 2026 business outlook report urges the government to support new North Sea drilling alongside renewable energy projects. It states that oil and gas will remain crucial for decades, currently meeting about 75 per cent of UK energy needs and projected to supply around a fifth by 2050.
Without increased domestic production, the UK risks greater reliance on imports amid global instability. The report warns that reliance on imported LNG could rise from 14 per cent last year to over a quarter by 2030 and nearly half by 2035, but with the right policies, this could fall to 6 per cent.
Enrique Cornejo, OEUK's director of energy policy, said: 'For as long as the UK needs oil and gas, it makes sense to produce as much of that here.' He emphasised that domestic production avoids offshoring emissions to other countries.
OEUK chief executive David Whitehouse stated: 'This is not an either renewables or oil and gas scenario. We urgently need greater supplies of secure, domestically-produced energy.' He called for a permanent tax regime to unlock up to £50 billion in investment.
A UK Government spokesperson countered: 'Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.' They argued that oil and gas prices are set on international markets, making the UK a price taker.
