The UK must produce more of its own oil and gas to avoid over-reliance on imports during the energy transition, according to a new report from Offshore Energies UK.
With the right investment conditions, the country could meet half of its projected oil and gas demand by 2050 from domestic production, the report finds.
The independent Climate Change Committee estimates the country will need between 13 and 15 billion barrels of oil and gas by mid-century. Currently, the UK is on track to produce just 4 billion barrels.
However, if government policy encourages investment, an additional 3 billion barrels could be produced domestically—reducing dependence on foreign supplies, securing jobs and adding £150bn to the UK economy.
The report comes as the government consults with industry on the future of the North Sea and oil and gas taxation.
Decisions on these policies, as well as the Comprehensive Spending Review and new Industrial Strategy, will be crucial for major energy projects, including carbon capture and storage (CCS) developments that could help decarbonise UK heavy industry.
OEUK’s Chief Executive, David Whitehouse, said: “The future of the North Sea is in our hands. Our report shows as we work together to accelerate renewables the UK must make the most of its own oil and gas – or choose to increase reliance on imports.”
“In an increasingly volatile world, the widening gap between the energy we produce and what we import matters. Secure homegrown oil and gas alongside renewables pays taxes, supports jobs and safeguards the supply chains we need to build our energy future.”
The UK’s total energy production hit a record low last year, with more than 40% of its energy imported.
OEUK’s survey of energy firms revealed that nine out of ten companies are now seeking investment opportunities abroad due to more favourable business environments.
The report warns that, while renewables and low-carbon solutions must continue to expand, maintaining homegrown gas supply is essential for industry and economic stability.
With our electricity demand set to more than double by 2050, oil and gas will still account for a fifth of the country’s energy mix.
OEUK is calling for a balanced approach—accelerating offshore wind, hydrogen and CCS, while ensuring the UK maximises its domestic oil and gas resources to support energy security, job creation and long-term economic growth.
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