Offshore Energies UK says the government’s own figures on Gas Security, released on the same day as the Budget, underline both a national energy security risk and the damage of its policies on North Sea energy.
The leading trade body is intensifying its campaign for a homegrown energy future.
The National Energy System Operator (NESO), the official energy system adviser, warns Britain could face a gas supply crisis by 2030 and the government should draw up plans to guard against this serious threat.
It has warned ministers to address an 'emerging risk to gas supply security' that could mean homes and businesses going without gas during a prolonged period of cold weather.
The warning comes as the UK government rejected an industry proposal to reform the Energy Profits Levy, or windfall tax, rejecting £50 billion of investment for the UK and the chance to protect energy security, jobs and economic value.
1,000 jobs continue to be lost every month across the UK’s offshore energy industry and its supply chains.
The UK is now set to import 80 per cent of its oil and gas by 2030. This shift increases the UK’s exposure to global market volatility and geopolitical risk, with implications for price stability and supply chain resilience. It also puts thousands of jobs and billions in economic value and tax revenue at risk.
Mike Tholen, director of policy and sustainability at Offshore Energies UK said:
'This report underlines the continuing importance of gas to the energy mix now and for decades to come.
'The obvious source is the North Sea rather than relying on imports. However the bad news from this week’s Budget is that the crippling current 78% tax on North Sea energy production – the Energy Profits Levy, is to stay in place until 2030.
'The UK has the resources to boost North Sea gas production and help meet peaks in energy demand, yet the continued taxing of non-existing windfall profits has become a major deterrent to North Sea investment.
'The government’s North Sea Future Plan makes clear that oil and gas production is not wanted here.
'That means instead of favouring domestic production we are ramping up imports of gas from overseas – which has an associated methane output four times higher.
'These imports damage the balance of payments and come at a real cost to families across the UK from the loss of investment and employment.
'Offshore Energies UK has repeatedly demonstrated to the Treasury that this policy is leading to the loss of 1,000 jobs a month and driving away investment. The Chancellor must reconsider.'
The government acknowledges the UK needs oil and gas for decades to come. As renewables roll out, 75 per cent of the UK’s energy still comes from oil and gas and 10-15 billion barrels are required by 2050.
OEUK has shown how half of this amount could be produced at home with tax reform, in tandem with a pragmatic approach to licensing. Without this, imports will continue to rise as jobs, projects and investment move overseas.
OEUK is reviewing both the full detail of the Budget and the government’s latest guidance on licensing, and the Future of the North Sea consultation outcome. OEUK has consistently advocated for a pragmatic decision on licensing.
No new exploration wells have been drilled in 2025. Domestic oil and gas production has fallen by 40% in the last five years and is on course to halve again by 2030. This is an accelerated decline driven by government policy, not geology.
Source: OEUK
