Independent research by Westwood Global Energy Group shows that up to 7.5 billion barrels of oil and gas could still be extracted from UK waters – 3.2 billion more than current official estimates. That’s enough to meet half the country’s oil and gas demand to 2050, yet current policy paths point to producing under a third.
“This is not about oil and gas versus wind but about whether we prioritise homegrown oil and gas over imports,” said OEUK Chief Executive David Whitehouse.
“If we act now, the UK can meet more of its oil, gas and renewables needs from homegrown resources – we need it all.”
The Climate Change Committee has said the UK will still need between 13 and 15 billion barrels of oil and gas to 2050, even if all net zero targets are met.
Right now, UK production is only forecast to deliver around 4 billion.
The report also finds that most of the remaining recoverable oil and gas is located within 50km of existing infrastructure.
This means it can be developed more quickly and at lower cost – and with fewer emissions – than new standalone projects. Many of these fields could be tied back to existing platforms, extending their lifespan and avoiding infrastructure being lost forever.
“The UK is at a record 40% of imported energy, with policy decisions not geology driving an accelerated decline in North Sea production,” Mr Whitehouse added.
He warned that once hubs are decommissioned, they are near-impossible to restart. Without investment, 180 of the UK’s 280 active fields could shut by 2030.
Developing the extra 3.2 billion barrels could add £165 billion to the economy, with £385 billion in total if the UK meets half its oil and gas demand domestically.
Importing LNG carries up to four times the carbon footprint of UK-produced gas, adding to the climate case for using local resources.
OEUK is calling on the government to support ongoing production, reform the windfall tax and avoid a self-inflicted collapse of the offshore energy sector.
