North Sea Row Explodes As War Drives Push For More Drilling

Britain’s energy battle has flared into a full-blown political clash, as industry leaders demand a return to North Sea drilling while ministers double down on green power.

Trade body Offshore Energies UK has warned the UK must “urgently” ramp up domestic oil and gas production — or risk dangerous dependence on imports in an increasingly unstable world.

The warning comes as the war involving Iran has sent global energy markets into turmoil, with disruption in the Strait of Hormuz pushing oil prices sharply higher.

Industry: UK Playing A Dangerous Game

OEUK argues the UK is exposing itself to price shocks by letting domestic production decline while demand remains high.

Oil and gas still account for roughly three-quarters of the country’s energy needs, and the group insists they will remain critical for decades — even as renewables expand.

Chief executive David Whitehouse warned that in times of crisis, cargoes can simply be diverted to higher bidders — leaving Britain short.

Their message is blunt: produce more at home, or pay the price.

Government: Drilling Won’t Cut Bills

Ministers aren’t buying it.

The government, led by Keir Starmer with energy policy driven by Ed Miliband, has banned new North Sea exploration licences — arguing more drilling won’t bring down costs.

Their reasoning is simple: oil and gas are sold on global markets, meaning UK production doesn’t shield consumers from international price swings.

Instead, Miliband says the crisis proves the need for “home-grown, clean power” — energy Britain can actually control.

Tax War And £50bn Gamble

The industry is also pushing for a major tax shake-up.

It wants the controversial windfall tax scrapped early and replaced with a lower, price-triggered levy — arguing this could unlock up to £50 billion in investment.

Critics, however, say this is less about national security and more about boosting profits during a period of high global prices.

Environmental groups, including Greenpeace UK, warn that expanding drilling won’t cut bills but will increase fossil fuel dependence at the worst possible time.

Political Battle Lines Drawn

The Conservatives have seized on the issue, calling for new licences and backing stalled projects like the Rosebank and Jackdaw fields.

Shadow energy secretary Claire Coutinho blasted the government’s stance as “sheer lunacy” during a supply crisis.

But academic research — including from University of Oxford — suggests the economic impact of more drilling would be limited, especially compared to accelerating renewables.

A Defining Energy Choice

At its core, this is a fundamental strategic choice.

Double down on domestic oil and gas to ride out global shocks — or break faster toward renewables to escape them entirely.

With war driving prices up and energy security back at the top of the agenda, the pressure on the government is only going to intensify.

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Imagine if the UK still drilled its plentiful reserves in the north Sea itself and used it domestically instead of wasting money on ugly wind farms and importing oil from wicked regimes.

Invest a few quid in the uk refineries to handle light crude and bobs yer uncle. Much more self sufficient. Create jobs. Wealth. Marvellous.

I think someone might have been suggesting that for years. Oh thats right, it was me.

Must be green oil

6 minutes ago, JonnyF said:

Imagine if the UK still drilled its plentiful reserves in the north Sea itself and used it domestically instead of wasting money on ugly wind farms and importing oil from wicked regimes.

Invest a few quid in the uk refineries to handle light crude and bobs yer uncle. Much more self sufficient. Create jobs. Wealth. Marvellous.

I think someone might have been suggesting that for years. Oh thats right, it was me.

Good time for Scotland to get independence and keep all their oil.

4 minutes ago, JimCM said:

Good time for Scotland to get independence and keep all their oil.

Yeah it is. They'll be happy to side with Iran, Russia and China.

Funny, one never hears the environmental terrorists protest against the absurd wars of America or Israel that have been going on for decades.

The way is like this.

Government issues licenses to oil companies.

Oil companies extract oil and sell it into the market at the international rate.

Oil companies make more money.

Zero benefits to customers who still pay the international rates.

There’s no renewable energy blocked in the Straits of Hormuz.

37 minutes ago, Chomper Higgot said:

The way is like this.

Government issues licenses to oil companies.

Oil companies extract oil and sell it into the market at the international rate.

Oil companies make more money.

Zero benefits to customers who still pay the international rates.

That's why the government should drill it themselves in the north sea and use it domestically.

Think of all the benefits to the environment of not shipping it in and out of the uk half way around the world in huge tankers.

Local jobs. Local wealth creation. Self sufficiency.

Marvellous.

12 minutes ago, JonnyF said:

That's why the government should drill it themselves in the north sea and use it domestically.

Think of all the benefits to the environment of not shipping it in and out of the uk half way around the world in huge tankers.

Local jobs. Local wealth creation. Self sufficiency.

Marvellous.

Jonny goes full on socialist…. commy even!

57 minutes ago, Chomper Higgot said:

The way is like this.

Government issues licenses to oil companies.

Oil companies extract oil and sell it into the market at the international rate.

Oil companies make more money.

Zero benefits to customers who still pay the international rates.

I know Serica pays almost 80% tax on its north sea production. It is this sort of lefty lunacy that has the UK reliant on despotic regimes oil. If the UK deported the illegals/parasites and opened the north sea they could be another Norway.

Vote restore.

8 minutes ago, SunnyinBangrak said:

I know Serica pays almost 80% tax on its north sea production. It is this sort of lefty lunacy that has the UK reliant on despotic regimes oil. If the UK deported the illegals/parasites and opened the north sea they could be another Norway.

Vote restore.

Net Zero is the antithesis of relying on any of these ‘despotic regimes’ you refer to.

I don’t know where the UK is going to get its Oil and Gas workers from, let alone plant and equipment.

The O&G industry is already booking engineers and opening contracts with suppliers to meet the post war boom in repair to war damaged facilities.

Some among us are in for some golden opportunities :-)

3 hours ago, JimCM said:

Good time for Scotland to get independence and keep all their oil.

Look at the maps and see exactly what bits of the Scottish EEZ have know oil reserves!

4 hours ago, Chomper Higgot said:

The way is like this.

Government issues licenses to oil companies.

Oil companies extract oil and sell it into the market at the international rate.

Oil companies make more money.

Zero benefits to customers who still pay the international rates.

So increasing supply does not reduce the cost. You must be a leftist, yes?

Why UK households pay so much

The structure of Britain’s energy market is the main driver of high prices.

Electricity prices are usually set by the most expensive generator needed to meet demand — typically gas-fired power plants. That means even electricity produced cheaply from wind or solar is priced according to global gas markets.

Around 85% of UK homes still rely on gas boilers for heating.

Renewables offer bigger savings

The analysis found that maximising North Sea production would reduce annual bills by between £16 and £82 — roughly 1% to 4.6% of the current £1,776 average household bill reported by Ofgem.

A faster transition to renewable energy could deliver far greater savings.

If electricity prices were set primarily by cheaper renewable generation rather than gas, households could save between £105 and £331 a year.

Drilling more oil and gas would leave Britain exposed to global fossil fuel shocks. Cutting reliance on gas — through renewables, insulation and electrified heating — offers far larger and longer-lasting relief for consumers.

Would more North Sea drilling lower UK energy bills? Our analysis says no

9 hours ago, Yellowtail said:

So increasing supply does not reduce the cost. You must be a leftist, yes?

I suggest you look at the size of the international oil market ( that sets the price of oil) then look at the absolute maximum about of oil the UK could produce.

It’s a drop in an ocean.

Regardless, the international markets set Uk oil prices.

War in Ukraine = Price of UK oil and UK oil based energy went up.

War in Iran = Price of UK oil and UK oil based energy went up.

Try to dispute these facts.

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16 hours ago, SingAPorn said:

Funny, one never hears the environmental terrorists protest against the absurd wars of America or Israel that have been going on for decades.

Our planes get better gas mileage

16 hours ago, Chomper Higgot said:

Jonny goes full on socialist…. commy even!

You seem to be confusing socialism with nationalism, state directed capitalism and anti globalist sentiment.

2 hours ago, JonnyF said:

You seem to be confusing socialism with nationalism, state directed capitalism and anti globalist sentiment.

You seem to be confusing crackpot ideas with how the oil and gas market actually works.

17 minutes ago, Chomper Higgot said:

You seem to be confusing crackpot ideas with how the oil and gas market actually works.

We know how it currently works Higgot.

We had moved on to discuss how we could improve the way we source our oil in future for the benefit of Britain.

Do try to keep up dear.

1 hour ago, Chomper Higgot said:

You seem to be confusing crackpot ideas with how the oil and gas market actually works.

The only thing we can be certain of, is that when demand is constant, adding supply does not reduce cost.