UK Warned It Must 'Urgently' Drill in North Sea to Boost Oil and Gas Supplies
A new report from Offshore Energies UK (OEUK) is urging the British Government to take immediate action to safeguard the nation's energy supply amid growing global instability. The industry body asserts that the UK must "urgently" boost its domestic oil and gas production from the North Sea, citing both environmental and energy security concerns.
Lower Emissions from Domestic Production
Analysis by OEUK suggests that gas extracted from the North Sea carries a significantly lower emissions footprint compared to imported liquified natural gas (LNG). The organisation's 2026 business outlook report on the UK’s offshore energy system contends that supporting domestic oil and gas extraction, including new North Sea drilling alongside renewable energy initiatives, is essential for maintaining energy security, affordability, and reliability.
The report warns that without increased domestic production, the UK risks growing dependence on energy imports at a time of heightened global instability. Current projections suggest the UK could rely on imported LNG for more than a quarter of its gas supply by 2030 and almost half by 2035, up from around 14 per cent last year.
Long-Term Energy Needs
According to the researchers, oil and gas currently fulfil approximately 75 per cent of the UK’s energy needs and are projected to meet around a fifth of demand by 2050, even as renewable energy adoption accelerates. While offshore wind, carbon capture, and hydrogen production are set for expanded roles, the country will continue to require substantial volumes of oil and gas for decades.
Enrique Cornejo, director of energy policy at OEUK, emphasised that the trade body is still considering climate targets while pointing to the UK’s need for domestic oil and gas. He stated that the UK was "pushing the problem elsewhere" by not producing energy domestically.
"Our position remains the same; for as long as the UK needs oil and gas, it makes sense to produce as much of that here," Mr Cornejo said. "What we’re setting out here is that there is a pathway to meet climate targets that makes a responsible use of our homegrown resources, and that also ensures that we do not offshore those emissions to other countries."
Economic and Environmental Benefits
The report highlights that North Sea gas not only has a lower emissions footprint than LNG from overseas but also supports high-value jobs and reduces exposure to volatile global markets. OEUK analysis showed that with the right investment conditions and support for pragmatic energy policies, LNG reliance can fall to 6 per cent by 2035.
David Whitehouse, chief executive of OEUK, stressed the urgency of the situation: "This is not an either renewables or oil and gas scenario. We urgently need greater supplies of secure, domestically-produced energy including oil and gas, which will remain a critical part of the UK energy system and economy for decades."
Government Response and Investment Needs
The OEUK also said replacing the temporary energy profits levy in 2026 with the permanent oil and gas price mechanism could unlock up to £50 billion of additional capital investment in oil and gas. Whitehouse added that implementing this mechanism is essential to reduce reliance on volatile imports, protect skilled jobs and supply chains, and ensure the UK can decarbonise while keeping energy secure and affordable.
However, a UK Government spokesperson responded: "Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills. Regardless of where it comes from, oil and gas is sold on international markets, which set the price for British billpayers – making us a price taker."
Climate Action and Energy Secretary Gillian Martin said: "We remain clear in our support for Scotland’s valued oil and gas sector, recognising the important contribution the North Sea continues to make to the energy system. But the maturity of the North Sea basin means that we need to also focus efforts on a just transition to new long-term opportunities for this highly-skilled workforce."
The report concludes that maintaining domestic supply is crucial for the UK's energy future, advocating for a balanced approach that includes both traditional and renewable energy sources to navigate the challenges of global energy markets and climate commitments.
