The UK government has rebuked calls from energy industry group Offshore Energy UK (OEUK) to increase domestic oil and gas production.
"Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills," a government spokesperson told Argus on 24 March in response to calls in the press from OEUK and several energy firms to increase North Sea gas and oil output.
"The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets," the spokesperson added.
OEUK released a new report on Tuesday showing that the UK could almost double the amount of gas and oil it produces through to 2050 with changes to tax and regulations, adding 3.7bn bl of oil equivalent (boe) to current projections for production from the UK continental shelf. This is on top of the 3.8mn boe over the 2025-50 period the UK is currently on track to recover, the industry organisation noted.
Oil and gas production has declined by around 75pc between 1999 and 2024, department for energy security and net zero (Desnz) data shows.
"Without more domestic production, the UK risks becoming increasingly reliant on energy imports at a time of rising global instability," the industry group said. "Maintaining domestic supply is therefore essential for energy security, affordability and reliability."
The government is taking pragmatic steps that will ensure existing oil and gas production continues as an essential part of the UK energy mix for decades to come, while actively scaling up clean energy industries in the North Sea, the government said.
The government added that issuing new licences to explore fresh fields would make no difference to the UK's current domestic energy output, as such projects typically take up to a decade to develop.
GBE chair turns against increased output
The chair of state-owned Great British Energy Juergen Maier changed his stance, moving to oppose calls for increased production on Tuesday, from a supportive position earlier in the week.
"I am fully supportive of the government position, which is to use existing fields and tiebacks for their lifetime and not to support exploration licences for new fields," Maier said in a post on social media platform LinkedIn on Tuesday.
"The end game is renewables and that we need to give supply chain companies enough time to transition," he added.
Maier had presented a list of arguments supporting more oil and gas production in the North Sea on 19 March, suggesting he supported this approach.
GBE was established in 2025 by the UK government to accelerate renewable energy development, enhance energy security, and support the nation's transition to clean power. Funded with £8.3bn ($11.1bn) over the current parliamentary term, GBE operates as an investment vehicle, development specialist, and project accelerator across the UK's clean energy sectors.
