The UK stands to lose a multi-billion-pound economic opportunity and risks letting investment, jobs and energy security slip away, say the authors of the 2026 Economic Report from Offshore Energies UK
Energy security is national security in an increasingly volatile world where conflict in the Middle East is constricting global oil and gas supply.
Boosting domestic energy production is critical to protecting households, businesses and the wider economy from global shocks, the report says.
The offshore energy industry supports around 245,000 UK jobs and generates £36.7 billion in gross value added every year, making it more than twice the size of the farming sector.
Reform of the current fiscal and regulatory framework could unlock billions of pounds of investment, safeguard tens of thousands of skilled jobs and deliver significant additional tax revenues for the Treasury.
The report comes as conflict in the Middle East continues to expose the fragility of global energy markets. Around 20% of global oil and gas supplies pass through the Strait of Hormuz, while LNG shipments through the route have fallen sharply since the conflict began.
OEUK warns that greater reliance on imports leaves the UK more exposed to geopolitical disruption, higher prices and increased inflation.
The report identifies a pipeline of more than £105 billion in offshore renewable energy projects over the next decade, including over £80 billion in offshore wind investment.
The UK currently relies on imports to meet over 40% of its energy needs.
Reduced investment in domestic production puts at risk our terminals, pipelines and remaining refining capabilities. Accelerating the decline of our production potential simply increases dependence on imports
The UK has a once-in-a-generation opportunity to build an integrated offshore energy economy, but only if policy supports investment, strengthens domestic supply chains and ensures more of the jobs and economic value are retained in UK communities.
Enrique Cornejo OEUK policy director said:
'Britain is at a critical juncture. Our industry is ready to invest and deliver more homegrown oil and gas, but the window for action is narrowing.
'Without urgent policy decisions, the UK risks increasing its dependence on imports and losing high value jobs. This trend is eroding the infrastructure that is essential to both energy security and the transition.
'Either we back UK domestic energy production and retain investment, skills and value in the UK, or we see these economic benefits move elsewhere. OEUK wants to see full support for all homegrown energies so UK can meet all its energy needs, strengthen growth and reduce reliance on imports.'
Read the Economic Report 2026 here
Source: OEUK
