Summary
The UK offshore energy industry is urging the government to support North Sea oil and gas drilling. They argue that domestic production is needed to reduce reliance on imports and respond to rising global energy uncertainties. The current government policy restricts new drilling licenses, citing climate goals and market price factors.
Key Facts
- Offshore Energies UK (OEUK) warns that the UK should produce more of its own oil and gas.
- The call follows rising oil and gas prices due to international conflicts affecting supply routes.
- The UK Labour government has banned new licenses for North Sea drilling, focusing on climate targets.
- OEUK says the UK still relies heavily on oil and gas, meeting around 75% of its energy needs.
- They propose replacing the current windfall tax with an Oil and Gas Price Mechanism by 2026.
- The Conservative Party seeks to end the current tax and drilling restrictions in parliament discussions.
- Environmental groups have previously blocked new field approvals due to environmental concerns.
- Researchers argue that the UK's energy bills won't significantly decrease by increasing local production.
