The UK’s North Sea oil and gas industry has powered the nation for over 50 years. Yet the Government’s decision in the November Budget to maintain the Energy Profits Levy (EPL) at 78% threatened that resource in minutes. KeyfactsEnergy has the story.

As domestic production falters under restrictive licensing policies and the damaging EPL, thousands of skilled workers are losing jobs, public revenues are shrinking, and the energy security is becoming alarmingly fragile.

The North Sea Transition Authority’s (NSTA) revised forecasts (Nov 2025) speak volumes: predicted 2030 output of oil and gas is 33m tonnes (mtoe), down from 74m tonnes (mtoe) in 2022. That’s a halving of production in only eight years.

The Government is leading by ideology without debate or logic. Restoring North Sea investment does not mean abandoning climate commitments; it is necessary to safeguard jobs, stabilise the economy, and maintain a bridge to a cleaner energy future. How can businesses invest in that future if they are being driven to ruin?

Ignoring these realities risks further loss of industry expertise and surrendering Britain’s energy independence to volatile global markets, with no environmental gain, as we continue to import oil and gas from overseas.

UK domestic production is critical – debunking the ‘Price Taker’ myth

Opponents of new licensing in the North Sea claim that the UK is merely a “price taker”, suggesting that UK domestic production cannot meaningfully affect prices or security. This is a short-sighted and dangerously narrow view of energy economics.

Domestic production reduces exposure to global supply shocks, transport bottlenecks and hostile suppliers – Germany’s reliance on Russian gas should be a warning enough. It insulates the UK against price volatility and strengthens its international bargaining power. The European scramble for LNG cargoes in 2022 after Russia’s invasion of Ukraine underscores that energy independence is a matter of national security.​

It also keeps profits, jobs, and taxes in Britain. And it’s greener: the NSTA itself confirmed that imported gas carries more than twice the carbon footprint of UK-produced gas.

We have a wealth of resources on our doorstep. Offshore Energies UK (OEUK) estimates up to 7.5 billion barrels of oil and gas remain untapped in UK waters, worth £165 billion to our economy. Shutting this down whilst relying on more expensive, higher-carbon imports is economic and environmental lunacy.

Read the full story here.