Prominent industry body Offshore Energies UK (OEUK) has issued a call for the United Kingdom to “urgently” increase its domestic oil and gas production from the North Sea. The plea comes as part of the organisation’s latest Business Outlook Report 2026, which highlights the strategic importance of homegrown energy for national security and environmental targets.
Analysis by OEUK indicates that gas extracted from the North Sea possesses a significantly lower emissions footprint compared to liquefied natural gas (LNG) imported from overseas. Data from the Oil and Gas Authority (OGA) in 2020 showed that UK Continental Shelf (UKCS) gas production had an average emission intensity of 22 kgCO2e per barrel of oil equivalent (boe), whereas imported LNG registered a higher average of 59 kgCO2e/boe. This disparity is largely attributed to the energy-intensive processes of liquefaction, transportation, and regasification associated with overseas LNG.
The 2026 report contends that the UK will require substantial volumes of oil and gas for decades, even with the accelerated deployment of renewable energy sources. Currently, oil and gas fulfill approximately 75% of the UK’s energy needs, with projections suggesting they will still account for around a fifth of demand by 2050. Without bolstering domestic production, the UK risks heightened reliance on energy imports amidst escalating global instability. Forecasts suggest the UK’s reliance on imported LNG could rise from approximately 14% last year to over a quarter by 2030, potentially reaching almost half by 2035. However, OEUK’s analysis posits that with appropriate investment conditions and pragmatic energy policies, this reliance could be curtailed to 6% by 2035.
To foster such investment, OEUK recommends replacing the temporary Energy Profits Levy (EPL), slated to end in 2026, with a permanent Oil and Gas Price Mechanism (OGPM). The industry body estimates this fiscal transition could unlock up to £50 billion in additional capital investment for the oil and gas sector.
David Whitehouse, chief executive of OEUK, underscored the necessity of a diversified energy approach. He stated: “This is not an either renewables or oil and gas scenario. We urgently need greater supplies of secure, domestically-produced energy including oil and gas, which will remain a critical part of the UK energy system and economy for decades.”
In Case You Missed it:
Unite launches ‘Keep the North Sea Working’ campaign to preserve North Sea oil and gas jobs
OEUK: New analysis shows untapped UK domestic gas reserves are double government estimate
Bowie warns more than 145 oil and gas ships to be drawn in to Labour’s “death knell” carbon tax
Massive public support for North Sea oil & gas revealed
Whitehouse added that weakening domestic supply would “only increase our reliance on imported LNG, leaving consumers more exposed to global volatility and higher emissions.”
Enrique Cornejo, director of energy policy at OEUK, addressed climate objectives directly, noting that “climate change is important.” He argued for a pathway that responsibly utilises homegrown resources, ensuring the UK does not “offshore those emissions to other countries”.
Mr Cornejo explained the rationale, stating: “Because of how accounting of carbon emissions works for every country, it would be very easy for us to just say we will not produce our energy in the UK, or we will not produce our steel in the UK, and we’re just pushing that problem elsewhere.”
