The UK energy sector calls for adjustments in taxation and licensing, claiming it could reduce import dependence.

(1) Senior executives in the UK energy sector have warned that if restrictions in the North Sea are eased and taxes are reduced, the UK's demand for oil and gas imports could be cut in half. (2) According to industry organizations, tax adjustments and the approval of new North Sea drilling licenses could release 111 new oil and gas projects worth around £50 billion. (3) More than 40% of the UK's energy demand relies on oil and gas imports. Domestic producers say that without further support, the UK will lose billions of pounds in economic opportunities, as well as investment, jobs, and energy security. (4) The organization is calling for the removal of the current energy windfall tax, a 38% tax imposed on oil and gas producers, before January 2027; this tax was originally set to be replaced in 2030. (5) The oil and gas industry has long argued that this tax discourages investment. In 2025, for the first time since North Sea oil and gas production began, there will be no exploration wells drilled, as the Labour Party has banned the issuance of new exploration licenses in UK waters. (6) According to the organization’s report, the proposed 111 sites are located within existing licensed areas. (7) The head of the organization has warned that without fundamental changes, the UK will continue to see job losses, significantly increased energy imports, and a decline in national resilience. (8) The report calls for the planned replacement of the current oil and gas windfall tax with a new tax to be brought forward from 2030 to 2027, and for the new tax only to be triggered if oil and gas prices soar. (9) The head of the organization emphasized the importance of timely decisions on the Rosebank and Jackdaw projects, warning that any delay in the Jackdaw gas field decision could affect the UK’s gas supply this winter, as this field could provide 6% of the necessary natural gas. (10) The Jackdaw and Rosebank projects were previously given the green light under the Conservative government, but were successfully challenged in Scottish courts on environmental grounds, resulting in most other potential projects being effectively shelved. (11) Environmental organization leaders stated that new drilling would not reduce energy bills and would do little to help energy security, adding that scientific evidence shows the world’s existing oil and gas reserves far exceed what can safely be burned if temperature rises are to be limited. (12) A government spokesperson said they are providing long-term certainty for the sector and investors, planning to replace the windfall tax before 2030 or sooner if the price threshold is reached, and ensuring a prosperous and sustainable future for the North Sea through investment.