Britain’s trade body for the offshore energy industry, Offshore Energies UK (OEUK), has portrayed the oil and gas production from the North Sea as a backbone of the nation’s security of supply to prevent over-reliance on imports and continue to pursue and implement the transition to a low-carbon and net-zero future.
After the International Energy Agency (IEA) published its Q2 gas market report in which it argued that the global economy should strengthen security of the gas supply against the backdrop of the Middle East crisis , The Guardian published a piece, where Fatih Birol , Executive Director of IEA, remarked that “the damage is done,” emphasizing the role the global oil crisis played in permanently transforming the fossil fuel industry.
In addition, Birol recommended that the UK should largely avoid expanding oil and gas production in the North Sea. These remarks have added fuel to the ongoing energy debate, as OEUK’s Chief decided to challenge the views of the IEA’s boss by highlighting that the North Sea oil and gas are the key to Britain’s energy security and transition to zero-emission sources.
David Whitehouse , Chief Executive of OEUK, pointed out: “Talking down production in the North Sea and discouraging investment in the UK Continental Shelf contradicts the IEA’s own analysis calling for continued investment in gas and the importance of supply flexibility.
“Growing reliance on carbon-intensive liquified natural gas imports leaves the UK increasingly exposed to geopolitical risk and raises global emissions from production. It also threatens the jobs and skills critical for the energy transition by accelerating the decline of our offshore energy sector.”
While warning that cutting output could jeopardize jobs, security of power supply, and transition goals, OEUK’s Chief outlines that the North Sea still holds more than 7 billion barrels, which can help augment domestic supply and curb reliance on imports that raise emissions.
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Whitehouse underlined: “There is significant potential left in the North Sea. As the second largest producer in Europe, the UK along with Norway is an anchor of European energy security. With the right tax and regulatory policies, the UK can still produce over seven billion barrels of oil and gas between now and 2050 – significantly higher than the less than four billion we are currently headed for. Around 75% of UK energy demand is met by oil and gas and all decarbonisation scenarios show they will continue to be essential through to 2050.
“We have presented clear analysis to the government that early introduction of the Oil and Gas Price Mechanism (OGPM), a permanent windfall tax to replace the Energy Profits Levy, would unlock £50 billion of new investment. This would allow the UK to meet over half of domestic demand, enhance energy security, increase tax revenues, protect jobs, and reduce reliance on carbon-intensive imports, as part of a balanced energy transition.”