The North Sea oil and gas industry is urging Miatta Fahnbulleh, the new Secretary of State for Energy Security and Net Zero, to prioritize UK domestic production and reform the sector's regulatory and tax framework. Industry leaders, including David Whitehouse of Offshore Energies UK (OEUK), congratulated Fahnbulleh and called for a "reset" in policy and language, emphasizing the need for clarity on projects like Rosebank and Jackdaw. They argue that supporting homegrown energy production will reduce reliance on imports and secure jobs and economic value within the UK.
OEUK analysis suggests that reforms could unlock an additional $50 billion in oil and gas investment over the next decade. This would include an estimated $26 billion in increased capital investment and more than $13 billion in boosted tax receipts, while supporting tens of thousands of jobs. The industry is also pushing for the immediate introduction of the Treasury's proposed Oil and Gas Revenue Levy and a reversal of the "damaging" ban on exploration licenses. Without reform, the imported liquefied natural gas (LNG) share of UK gas supplies could reach 46% by 2035, compared to 6% with faster reform.
The industry specifically calls for urgent regulatory approval for projects such as Jackdaw and Rosebank, noting that these, along with a pipeline of other domestic oil and gas developments, are crucial for sustaining the sector. They emphasize that the UK will continue to require oil and gas for decades, and the choice is between domestic production or increasing reliance on imports and exporting investment. Moreover, independent polling data shows that almost 70% of Labour voters prioritize North Sea oil and gas production. While the government has agreed to "tie-backs" as a concession, the industry's biggest concern is the 78% Energy Profits Levy (EPL), or windfall tax, which they argue makes the North Sea unattractive for investors and has dried up investment despite a pledge from Labour's 2024 manifesto to not issue new licenses.
