Half of Oil and Gas Demands Can Be Met With Domestic Production, Says UK Trade Association

A leading trade association has urged the leftist government in London to open up more domestic oil and gas production, arguing that half of the UK’s demand could be met under “the right business conditions”.

In its annual Business Outlook report, the Offshore Energies UK industry body said this week that Britain is only on track to use four billion barrels of oil and gas.

This comes despite the Climate Change Committee noting that the country would likely need to use between 13 and 15 billion barrels of oil and gas over the next 25 years as it seeks to phase out carbon-based fuels by 2050.

This represents a significant shortfall, meaning that Britain would likely need to import at least nine to 11 billion barrels to meet demand.

However, the OEUK’s report found that the UK could produce an additional two to three billion barrels of oil at sites in the North Sea if businesses were encouraged to invest.

The trade association noted that, given the need to be transported, imported energy often results in more carbon emissions than domestically produced oil and gas and that imported energy does not contribute to the UK economy in terms of jobs created or taxes collected.

The OEUK said that increasing production in the North Sea could add £150 billion in gross value to the British economy.

“We are, and will remain, reliant on energy imports to supplement domestic production of energy. Maximising our domestic resources will ensure that we take hold of our energy future,” the report stated.

Since coming into power, the leftist Labour government has so far refused to issue licences to explore new fields off the coast of Britain to increase domestic production, despite the UK and Europe continuing to face an energy crisis amid the Ukraine war.

Demonstrating the harsh business climate under the Labour government for energy producers, the group seperately found that nearly 90 per cent of businesses represented by the OEUK believe that the only way to grow is to invest in markets outside of the UK.

However, OEUK chief executive David Whitehouse argued that if the government continues to refuse to issue new licences, it should at least seek to encourage new projects in existing licensed areas.

“The UK needs oil and gas — and we should be focused on producing as much of that ourselves,” he said.

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