UK energy leaders back continued North Sea gas production

UK ENERGY leaders have called for continued North Sea gas production, arguing it remains essential to energy security despite the country’s push towards renewables.

Tara Singh, CEO of RenewableUK, said it was “entirely sensible” for domestic gas production to continue as the latest global energy crisis – driven by conflict in the Middle East – exposes the risks of import dependence.

Writing in The Telegraph, Singh – who worked at Shell during the 2022 energy crisis – stressed that gas would remain a necessary transition fuel especially in areas such as domestic heating where electrification is not yet fully viable. Without domestic supply, she warned, the UK would be more exposed to volatile international markets.

Juergen Maier, chair of GB Energy, echoed her argument on LinkedIn, saying that continued North Sea activity could help protect jobs and support supply chains through the energy transition.

Policy tension

The UK has taken a mixed approach to North Sea development in recent years, including a ban on new exploration licences while allowing production from existing fields to continue.

Commitments in the latest Autumn Budget promised continued drilling at existing fields in the North Sea which some in the sector believe will usher in more relaxed rules on drilling.

Industry groups have reinforced the call. Offshore Energies UK said domestic oil and gas production is needed alongside renewables to reduce reliance on imports.

No quick fix for prices

Despite backing continued drilling, Singh stressed that increased domestic production would not bring down energy bills.

The North Sea is a mature basin, meaning extraction costs are relatively high. “More domestic production can support jobs, supply chains, tax revenues and resilience,” she said: “What it cannot do is shield households from global gas-price shocks.”