The UK Government should support continued production of homegrown oil and gas while accelerating renewables to ensure a successful future for the North Sea, according to the leading representative body for the UK offshore energy industry.
The UK Government has launched two important consultations that shape the future of the North Sea and provide a new permanent mechanism to ensure the oil and gas fiscal regime can respond to future shocks in oil and gas prices.
OEUK today underlined the important role of the UK’s domestic energy production in supporting the country’s economic, security and climate goals, while supporting 200,000 highly skilled people across UK.
Official statistics show that UK total energy production, including oil, gas and electricity generation, hit a record low in the third quarter of 2024 and that the UK imported over 40% of its total energy needs from overseas.
OEUK Chief Executive David Whitehouse said:
'The UK offshore energy industry, including its oil and gas sector, is responsible for thousands of jobs across Scotland and the UK, and today the government has committed to meaningful consultation on the long-term future of our North Sea. That is important and welcomed. Energy policy underpins our national security – how we build a clean energy future and leverage our proud heritage matters.
'We still have oil and gas reserves in our offshore waters and we should use them responsibly alongside renewable energy. We must get this right and this means meaningful engagement.
'Today’s consultations, on both the critical role of the North Sea in the energy transition and how the taxation regime will respond to unusually high oil and gas prices, will help to begin to give certainty to investors and create a stable investment environment for years to come. We will continue to work with government and wider stakeholders to ensure a future North Sea which delivers economic growth to supports those communities that rely on this sector and workers across right and the UK.'
While the UK has made huge strides in expanding supplies of renewable electricity, electricity still only represents a third of the UK’s total energy consumption. Over 24 million homes rely on gas boilers for heat and hot water.
OEUK reinforced the need for government to support investment in homegrown gas and oil as well as wind, hydrogen and CCUS to avoid widening the energy import gap.
Today, the UK offshore energy sector plays a major role meeting the country’s energy needs through industrial and residential fuel, power, and heating.
Source: OEUK
