Home Business NewsGovernment urged to drill in the North Sea to boost oil and gas production

Government urged to drill in the North Sea to boost oil and gas production

24th Mar 26 12:21 pm

The United Kingdom must urgently increase its domestic oil and gas production from the North Sea to bolster energy security and reduce greenhouse gas emissions, as emphasised by Offshore Energies UK (OEUK), a prominent industry organisation.

This call to action comes in light of increasing concerns over energy dependence and environmental impacts.

The organisation highlighted that natural gas extracted from the North Sea has a significantly lower emissions footprint compared to imported liquefied natural gas (LNG), which often involves more environmentally taxing transportation and processing methods, the Independent reported.

Consequently, OEUK is advocating for government support for new exploration and drilling initiatives, suggesting that these efforts should go hand in hand with the development of renewable energy projects.

In its comprehensive outlook for the energy sector in 2026, the organisation noted that, despite ongoing growth in offshore wind energy, hydrogen production, and carbon capture technologies, oil and gas are projected to continue supplying approximately three-quarters of the UK’s energy needs. Notably, by 2050, these traditional energy sources are expected to account for around one-fifth of the nation’s overall energy demand, illustrating their continued relevance in the energy mix.

Furthermore, OEUK articulated the risks of an escalating reliance on energy imports against a backdrop of global instability and geopolitical tensions.

The organisation contended that increasing domestic oil and gas production not only contributes to national energy independence but also plays a critical role in job creation, consumer affordability, and overall market stability. Enrique Cornejo, the director of energy policy at OEUK, underscored the importance of maintaining a robust domestic oil and gas sector.

He acknowledged the need to meet climate targets. Still, he reiterated that maintaining strong production levels is essential to ensuring a reliable energy supply and keeping the lights on across the UK.

Cornejo said: “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.”

David Whitehouse, chief executive of OEUK, said: “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.”

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