Offshore Energies UK (OEUK) has congratulated Miatta Fahnbulleh on her appointment as Secretary of State for Energy Security and Net Zero and urged her to meet North Sea industry representatives to make clear the new government backs homegrown energy production over growing reliance on imports.
There is now an opportunity for the new Energy Secretary to work with the sector to deliver on Prime Minister Andy Burnham’s commitment to reindustrialise Britain by supporting the workers, businesses and communities that underpin the UK’s domestic energy industry.
The UK energy industry urgently needs regulatory approval for projects such as Jackdaw and Rosebank, alongside a pipeline of other domestic oil and gas developments, and a continuing government commitment to the development of renewables.
Failing to exploit our own oil and gas does not alter UK oil and gas consumption. It just means we depend increasingly on imports.
The Treasury’s proposed Oil and Gas Revenue Levy must be introduced now to unlock £50bn of new investment.
The damaging ban on exploration leaves the UK trailing behind Norway instead of partnering with it to underpin European energy security. This ban must be reversed.
Successive governments have failed to prioritise homegrown energy production, leaving the country increasingly dependent on carbon-intensive imports and exposed to geopolitical risk.
Using imported liquified natural gas (LNG) from America or Qatar which is increasingly being used to replace North Sea gas, involves carbon emissions that are four times higher.
OEUK analysis shows that a reset addressing reform of the regulatory and tax framework for the North Sea industry could unlock an additional £50 billion in oil and gas investment.
Over the next decade alone this would increase capital investment by £26 billion, boost tax receipts by more than £13 billion and support tens of thousands of jobs.
It would also help the UK meet at least half of its oil and gas needs from domestic production between now and 2050.
Faster reform could also cut the imported liquified natural gas (LNG) share of UK gas supplies to 6% by 2035, compared with 46% without reform.
Independent polling data from Opinium earlier this month shows that the government’s own supporters are looking for a reset on energy policy from the new prime minister. Almost 70% of Labour voters say the UK should prioritise North Sea oil and gas production compared to just 9% who said it doesn’t matter where oil and gas comes from.
David Whitehouse, chief executive of Offshore Energies UK said:
“All of us here at OEUK congratulate Miatta Fahnbulleh on her appointment as Energy Secretary and look forward to working with her as she shapes UK energy policy to deliver on the Prime Minister’s vision to reindustrialise Britain.
“The UK will still need oil and gas for decades to come. The question is whether we produce as much of that energy as possible here, supporting our own jobs, communities and economy, or become increasingly reliant on imports while exporting investment and economic value overseas. We urge our new Energy Secretary to back North Sea production as part of a secure and managed energy transition.
“The Prime Minister has made it clear that communities and industry will be at the heart of his government. You cannot put communities first if you do not back the industries that sustain them. That means backing homegrown energy in all its forms, from North Sea oil and gas to offshore wind, unlocking investment and giving workers and businesses the confidence to build Britain’s energy future here at home.”
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