Committee publication · Correspondence · 16 July 2025
Letter from Offshore Energies UK regarding GB Energy and the net zero transition inquiry, dated 4 July 2025
Summary
Offshore Energies UK (OEUK) submits evidence to the Scottish Affairs Committee's inquiry into GB Energy and the net zero transition. The letter and attached consultation response argue that domestic oil and gas production remains compatible with net zero, that the UK requires 13–15 billion barrels of oil and gas equivalent by 2050, and that ceasing new oil and gas licences will increase reliance on imports with higher carbon footprints. OEUK calls for continued licensing, integrated energy planning, workforce transition support, and supply chain investment.
Key findings
- OEUK argues the UK will need 13–15 billion barrels of oil and gas equivalent (2025–2050) per Climate Change Committee estimates, but current NSTA forecasts only 4 billion; with policy support, the UKCS could add 3 billion more, totalling 7 billion and contributing £165 billion to the economy.
- Oil and gas currently meet 75% of UK energy needs; domestic production has a 58 million tonne CO₂ advantage over imported LNG over the 2025–2050 period.
- 60% of oil and gas supply chain companies are already diversifying into offshore wind, hydrogen, and CCS, but these sectors account for only zero to one-fifth of their revenues; 90% of supply chain firms are seeking overseas growth due to policy uncertainty.
- OEUK recommends continuing oil and gas licences, accelerating environmental impact assessments, prioritising domestic supply chain jobs, recognising the integrated energy workforce, and implementing centralised skills frameworks with localised delivery.
- The sector has narrowed its gender pay gap by 7 percentage points since reporting began; women now hold 23% of top pay quartile positions, up 4 percentage points from the baseline.
Tone
AdversarialTopics
Key actors
Offshore Energies UK (OEUK), David Whitehouse, Jenny Stanning, Patricia Ferguson MP, Climate Change Committee, North Sea Transition Authority (NSTA), Department for Energy Security and Net Zero (DESNZ), International Energy Agency (IEA)
Notable line
“The government's proposal to issue no new oil and gas licences for the exploration of new fields will result in the UK being more reliant on imports of oil and gas to meet UK energy demand.”
Key Quotes
“… for as long as we need oil and gas, we must continue to produce this in the UK where we can deliver this at lower emissions to imported alternatives, contribute billions of pounds to the economy every year and anchor skills that will be needed now and, in the future, here in the UK.”
“The Climate Change Committee (CCC) estimate the UK will require 13-15 billion barrels of oil and gas equivalent (boe) in the period 2025 to 2050 to meet its energy needs 3 however the NSTA currently forecast the UK to produce only 4 billion barrels of oil and gas in the period 2025 to 2050 4 , less than one third of the balanced pathway forecast demand.”
“This would mean the UKCS could support half of the UK demand and add £165 billion 7 of gross value in the UK economy whilst maintaining support for the current workforce.”
“By choosing to prioritise domestic production as part of an integrated energy system, rather than importing LNG to meet the demand for gas, this would reduce production emissions by an estimated 58 8 million tonnes of CO 2 over this period.”
“90% of the supply chain companies are looking overseas for growth potential. 7 Without certainty on the future of oil and gas activity in the UK, there will be further flight of capital …”
“The division of jobs into "clean" jobs versus "other" jobs is unhelpful, and it risks alienating those workers employed in existing sectors and does not recognise the integrated nature of the energy workforce …”
“The successful path for the UK is one that recognises the role of both oil and gas plus renewables; and not one versus the other, to deliver an integrated energy system that can respond to the UK's needs.”
Source · parliament.uk record ↗