Offshore Energies UK has published a plan calling for industry and government to develop a new national energy strategy that places home produced energy at its core.
With the UK Government currently consulting on a new industrial strategy, OEUK says the success of any such plan hinges on one critical factor: energy.
A document published by the trade body puts homegrown energy at the top of seven actions it says it can take with government to realise its vision for a modern industrial Britain.
Currently, nearly 40% of the UK’s energy is imported, and domestic energy prices are the highest among G7 nations.
While OEUK sets out in detail how homegrown energy adds more value to the UK economy than imports, the trade body acknowledges government and industry must do more to understand how the UK can manage electricity and fuel prices and bring down costs. OEUK said it is to undertake further analysis later in the year.
The UK offshore energy sector supports more than 200,000 UK jobs. In 2023 alone the UK sector added £25bn in value to economy. This figure, known as Gross Value Added (GVA), represents around 1.5% of the total UK economy (over 5 times the contribution of the UK steel industry and twice the contribution of the UK car industry).
OEUK’s plan says that by choosing to put home-produced energy at the heart of government strategies, the sector can:
- Deliver £200bn investment this decade alone in UK offshore energies
- Support UK supply chain firms as well as operators and developers to win new work in offshore wind (floating and fixed), carbon capture and storage, and hydrogen as well as oil and gas
- Add an additional £150bn of value to the UK economy and support 200,000 jobs through backing the responsible production of an additional 3 billion barrels of domestic oil and gas while meeting UK climate goals.
The paper also highlights how prioritising UK offshore energy developments can benefit North Sea countries and wider Europe, with the UK having Europe’s largest CO2 storage capacity.
OEUK Chief Executive David Whitehouse said:
'If we want to build world-leading products, grow British business, and create thousands of high-quality jobs across the UK, then we must put homegrown energy at the heart of the nation’s economic, security and climate ambitions.
'Decarbonisation must not mean deindustrialisation. Output in our energy intensive industries is at a 35-year low, yet our North Sea has the capability to provide all the energy it needs now and in future. In a world where we should be protecting our sovereign capabilities, that is not good enough.
'Government and industry must work together to bring down energy costs while protecting the dividend that only home-produced energy can bring in terms of taxes paid, jobs supported, and value added to the economy. By choosing homegrown energy over imports, our plan shows a path where the UK can achieve its climate goals and grow the economy.
'With the right investment climate and clear backing, UK offshore energy companies are prepared to invest up to £200 billion this decade across offshore wind, hydrogen and carbon storage alongside oil and gas. This investment would underpin the UK’s vision for a modern industrial Britain.'
OEUK outlines seven steps governments and industry should take to deliver a modern industrial Britain:
- Put affordable homegrown energy production at the heart of industrial strategy. The UK depends on imports for nearly 40% of its total energy demand, and UK energy prices are higher than our counterparts. Energy strategy must recognise the UK energy mix today and maps a clear path that focuses on homegrown production will drive down cost and enhance UK security.
- Build a strong domestic industrial base: leveraging strengths, enabling ambition and innovation. The offshore energy sector is a high growth sector that can deliver £200 billion investment in this decade alone to accelerate UK economic growth engine building on existing industrial strengths.
- Government and Industry partnership for a pro-business environment: Through partnership across Governments and Industry, the UK can create an internationally competitive business environment with stable and predictable fiscal regime and best practice embedded across industry.
- Efficient, effective, and co-ordinated regulatory and project approval processes: The regulatory landscape is complex for energy investment and must be streamlined.
- International collaboration is a critical pillar of success. Turning the North Sea into a shared energy hub can deliver cheaper, high-quality energy for consumers in the UK & EU.
- Deliver a skills revolution – Creating valuable jobs for skilled and talented people. Support a joined-up approach, with a centralised skills framework, supported by an integrated energy workforce plan.
- Implementation should be driven through an Offshore Energy Mission Control: It’s a complex sector, and a single point of coordination can cut red tape and make sure all efforts are aligned
You can download a copy of the vision here: OEUK Industrial Strategy White Paper, May 2025 | Offshore Energies UK (OEUK)
Source: OEUK
