The United Kingdom could cover half of its domestic oil and gas requirements without relying on imports if the government provided greater support to the sector, according to a new industry report. Offshore Energies UK (OEUK) stated that reforms to the windfall tax and the approval of controversial developments such as Rosebank and Jackdaw could unlock 111 projects, attracting up to £50bn in investment.
The assertion comes amid declining North Sea output, with projections indicating that domestic supplies will satisfy only approximately one-third of UK demand through 2050. The industry body highlighted that its sector supported 180,000 jobs across the UK in 2024 and argued that boosting homegrown production is essential for shielding households and businesses from global energy shocks.
Central to the OEUK’s case is a call for the immediate scrapping of the Energy Profits Levy (EPL), currently set to be replaced by the Oil and Gas Revenue Levy in 2030. Industry leaders have long contended that the EPL deters investment because it persists even when wholesale prices drop. Last year marked a historic low, with no exploration wells drilled for the first time since production began in the North Sea.
OEUK policy director Enrique Cornejo warned that the country stands at a critical juncture. He noted that while the industry is prepared to invest in more homegrown fuel, the opportunity is narrowing. Without swift policy action, the UK risks increasing its reliance on imports and losing high-value employment.
The report also called for sustained political backing for the Rosebank and Jackdaw fields, both of which were approved under the previous Conservative administration but subsequently blocked by legal challenges from environmental groups in Scottish courts. These rulings have effectively paused other potential projects while decisions remain pending.
However, environmental campaigners have strongly rejected the industry’s proposals. Uplift, one of the groups that successfully challenged the projects in court, described the OEUK report as a “fantasy.” Tessa Khan, the group’s director, argued that the Prime Minister should disregard what she termed the “self-interested demands” of oil companies and instead focus on communities affected by recent climate disasters, such as summer wildfires.
Khan emphasized that the UK has already exhausted much of its accessible gas reserves, and the majority of remaining oil is exported rather than used domestically. She stated that new drilling would neither reduce consumer bills nor significantly enhance energy security, adding that the science confirms the world possesses far more fossil fuels than can be safely burned while limiting global warming.
Among the projects cited as potentially recoverable are the second phase of Rosebank, the Cambo field, and Clair South, all located west of Shetland. Although the current Labour government has banned new exploration licenses in UK waters, OEUK maintains that the majority of the 111 identified projects lie within already licensed areas.
In response, a UK government spokesperson affirmed that efforts are underway to provide long-term certainty for investors, including plans to replace the EPL by 2030 or earlier if a price floor is triggered. The spokesperson added that record investment is being directed toward ensuring a prosperous and sustainable future for the North Sea, aiming to deliver skilled jobs while fostering the growth of clean energy industries.
We need jobs, but not at the cost of climate disasters. The UK should lead on clean energy, not chase oil.
No exploration wells drilled last year is a huge red flag. The industry is struggling before we even talk about taxes.
111 projects sounds impressive, but the article admits most are already licensed. What’s really new here?
Does anyone else find it ironic they claim energy security through imports while fighting domestic projects in court?
£50bn for more drilling? I’d rather see that invested in renewables. The weather doesn’t care about our fiscal policy.