Reform the EPL in 2026 to protect jobs and boost tax revenues.
A permanent windfall tax is essential for the UK’s energy security.
Like the Chancellor, we believe energy security is national security. With oil and gas meeting 70% of UK demand, prioritising domestic production is vital for resilience, jobs, and lower emissions.
While the temporary EPL now deters investment, the proposed Oil and Gas Price Mechanism (OGPM) offers the permanent fiscal certainty needed to safeguard the sector.
We urge the Government to legislate and implement the OGPM immediately.
The UK needs a stable, permanent windfall tax that protects taxpayers during price spikes and gives industry the certainty to invest in homegrown energy.
Email your MP now and call for the OGPM to be introduced as soon as possible.
Our new analysis shows that updating the tax in 2026 would:
Increase government revenues by £15.7 billion within ten years
Unlock £50 billion of UK oil and gas projects
Sustain tens of thousands of highly skilled jobs
Support the supply chain needed for offshore wind, carbon storage and hydrogen
Keep the UK’s energy system secure by making full use of homegrown resources
Reforming the EPL in 2026 – rather than delaying until 2030 – increases tax receipts from £32.9 billion to £48.6 billion.
This comes from:
£7.5 billion in payroll taxes from jobs sustained
£6.3 billion extra corporation tax from operators
£4.6 billion from the new oil and gas price mechanism
Wider contributions from the UK supply chain and midstream infrastructure
This briefing document sets out OEUK’s perspective on the future of the North Sea, highlighting its essential role in supporting the UK’s energy security and climate goals. It calls for a stable and competitive investment environment, a clear long-term strategy, and strong collaboration between industry and government. The document outlines opportunities in oil and gas, offshore wind, hydrogen, and carbon capture and storage (CCUS), and makes the case for a joined-up approach that supports jobs, drives innovation, and boosts economic growth.
Use our interactive map to discover detailed information about every UK parliamentary constituency. Find your local MP and see which OEUK members are active in your area.
The offshore energy industry sustains over 200,000 jobs across the UK, including 90,000 in Scotland.
In 2023 alone, UK oil and gas added £25bn to the economy. Companies operating here plan to invest over £120bn in offshore energy by 2030, including at least £65bn in offshore wind, hydrogen and the carbon capture and storage – all solutions needed to help the nation decarbonise.
Even in the net zero future, the UK will require 13-15 billion barrels of oil and gas between now and 2050. Current plans show the UK will produce less than 4 billion barrels, leaving us increasingly reliant on imports.
The industry has cut oil and gas emissions by 28% since 2018 and more than halved methane emissions. The same supply chains, engineering expertise, and infrastructure that deliver our oil and gas today are also building the offshore wind farms, carbon storage projects, and hydrogen networks of the future.
The North Sea underpins industrial capability across the UK, from energy hubs in Aberdeen and Teesside to manufacturing sites in the Black Country, the Humber, and central Scotland.
