UK should drill in North Sea to strengthen its vitality provide, commerce physique warns | EUROtoday

The UK should “urgently” increase its home oil and fuel manufacturing from the North Sea, an trade physique has asserted, citing environmental and vitality safety considerations.

Analysis by Offshore Energies UK (OEUK) means that fuel extracted from the North Sea carries a decrease emissions footprint in comparison with imported liquified pure fuel (LNG).

A brand new report from OEUK is urging the British Government to assist home oil and fuel extraction, together with new North Sea drilling, alongside renewable vitality initiatives to safeguard the nation’s vitality provide.

The organisation’s 2026 enterprise outlook report on the UK’s offshore vitality system contends that the nation will proceed to require substantial volumes of oil and fuel for many years, at the same time as renewable vitality adoption accelerates.

The report warns that with out elevated home manufacturing, the UK dangers rising dependence on vitality imports at a time of heightened world instability.

While offshore wind, carbon seize, and hydrogen manufacturing are set for expanded roles, oil and fuel presently fulfil roughly 75 per cent of the UK’s vitality wants and are projected to satisfy round a fifth of demand by 2050, in keeping with the researchers.

The report warns that sustaining home provide is crucial for vitality safety, affordability and reliability.

It additionally stated that North Sea fuel has a decrease emissions footprint than LNG from abroad, helps high-value jobs and reduces publicity to risky world markets.

Enrique Cornejo, director of vitality coverage at OEUK, stated the commerce physique continues to be contemplating local weather targets whereas pointing to the UK’s want for home oil and fuel.

Mr Cornejo stated the UK was “pushing the problem elsewhere”.

He stated: “We are continuing to support the development of renewable energies, we think that’s important.

“However, 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.”

He continued: “Our position is, obviously, climate change is important, and 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.

“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, or we will not produce our steel in the UK, and we’re just pushing that problem elsewhere.”

Current projections counsel the UK may depend on imported LNG for greater than 1 / 4 of its fuel provide by 2030 and virtually half by 2035, up from round 14 per cent final yr.

However, OEUK evaluation confirmed that with the correct funding situations and assist for pragmatic vitality insurance policies, LNG reliance can fall to six per cent in the identical yr.

The OEUK additionally stated changing the short-term vitality income levy in 2026 with the everlasting oil and fuel value mechanism may unlock as much as £50 billion of further capital funding in oil and fuel.

David Whitehouse, chief government of OEUK, stated the UK “urgently” wants a higher provide of domestically-produced vitality.

He stated: “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.

“As demand rises and electricity use accelerates, weakening domestic supply would only increase our reliance on imported LNG, leaving consumers more exposed to global volatility and higher emissions.

“Recent events have shown how quickly energy markets can tighten and how easily cargoes can be diverted away from the UK when other buyers bid higher. Energy security means backing homegrown oil and gas alongside renewables.

“To unlock investment, the UK needs a permanent tax regime that gives confidence to investors while protecting taxpayers when prices spike. The Government’s proposed oil and gas price mechanism provides that balance.

“Implementing it 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.”

A UK Government spokesperson stated: “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.

“The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets.”

Climate Action and Energy Secretary Gillian Martin stated: “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.

“We need to see a parallel track approach to the energy transition, in which North Sea oil and gas production is managed alongside the increasing deployment of renewables.

“We are calling on the UK Government for an immediate end to the energy profits levy and a fair future fiscal regime, to help ensure there is a transition that protects jobs and skills, and delivers a pipeline of future investment.”