The UK must "urgently" boost its domestic oil and gas production from the North Sea, an industry body has asserted, citing environmental and energy security concerns.
Analysis by Offshore Energies UK (OEUK) suggests that gas extracted from the North Sea carries a lower emissions footprint compared to imported liquified natural gas (LNG).
A new report from OEUK is urging the British Government to support domestic oil and gas extraction, including new North Sea drilling, alongside renewable energy initiatives to safeguard the nation's energy supply.
The organisation's 2026 business outlook report on the UK’s offshore energy system contends that the country will continue to require substantial volumes of oil and gas for decades, even as renewable energy adoption accelerates.
The report warns that without increased domestic production, the UK risks growing dependence on energy imports at a time of heightened global instability.
While offshore wind, carbon capture, and hydrogen production are set for expanded roles, oil and gas currently fulfil approximately 75 per cent of the UK’s energy needs and are projected to meet around a fifth of demand by 2050, according to the researchers.
The report warns that maintaining domestic supply is essential for energy security, affordability and reliability.
It also said that North Sea gas has a lower emissions footprint than LNG from overseas, supports high-value jobs and reduces exposure to volatile global markets.
Enrique Cornejo, director of energy policy at OEUK, said the trade body is still considering climate targets while pointing to the UK’s need for domestic oil and gas.
Mr Cornejo said the UK was “pushing the problem elsewhere”.
He said: “We are continuing to support the development of renewable energies, we think that’s important.
“However, our position remains the same; for as long as the UK needs oil and gas, it makes sense to produce as much of that here.”
He continued: “Our position is, obviously, climate change is important, and what we’re setting out here is that there is a pathway to meet climate targets that makes a responsible use of our homegrown resources, and that also ensures that we do not offshore those emissions to other countries.
“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.”
Current projections suggest the UK could rely on imported LNG for more than a quarter of its gas supply by 2030 and almost half by 2035, up from around 14 per cent last year.
However, OEUK analysis showed that with the right investment conditions and support for pragmatic energy policies, LNG reliance can fall to 6 per cent in the same year.
The OEUK also said replacing the temporary energy profits levy in 2026 with the permanent oil and gas price mechanism could unlock up to £50 billion of additional capital investment in oil and gas.
David Whitehouse, chief executive of OEUK, said the UK “urgently” needs a greater supply of domestically-produced energy.
He said: “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.
“As demand rises and electricity use accelerates, weakening domestic supply would only increase our reliance on imported LNG, leaving consumers more exposed to global volatility and higher emissions.
“Recent events have shown how quickly energy markets can tighten and how easily cargoes can be diverted away from the UK when other buyers bid higher. Energy security means backing homegrown oil and gas alongside renewables.
“To unlock investment, the UK needs a permanent tax regime that gives confidence to investors while protecting taxpayers when prices spike. The Government’s proposed oil and gas price mechanism provides that balance.
“Implementing it is essential to reduce reliance on volatile imports, protect skilled jobs and supply chains, and ensure the UK can decarbonise while keeping energy secure and affordable.”
A UK Government spokesperson said: “Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.
“Regardless of where it comes from, oil and gas is sold on international markets, which set the price for British billpayers – making us a price taker.
“The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets.”
Climate Action and Energy Secretary Gillian Martin said: “We remain clear in our support for Scotland’s valued oil and gas sector, recognising the important contribution the North Sea continues to make to the energy system.
“But the maturity of the North Sea basin means that we need to also focus efforts on a just transition to new long-term opportunities for this highly-skilled workforce.
“We need to see a parallel track approach to the energy transition, in which North Sea oil and gas production is managed alongside the increasing deployment of renewables.
“We are calling on the UK Government for an immediate end to the energy profits levy and a fair future fiscal regime, to help ensure there is a transition that protects jobs and skills, and delivers a pipeline of future investment.”
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