Energy Executives Urge UK Government to Prioritize North Sea Oil Production

Energy executives urged the UK government to prioritize North Sea oil and gas production during emergency talks held by the trade body Offshore Energies UK. The meeting, attended by executives from major energy companies active in the North Sea, heard that apart from Denmark the UK was the only country cutting back on its potential oil and gas production.

Offshore Energies UK stated it was urging the immediate prioritisation of domestic energy production including North Sea oil and gas as well as renewables.

The talks followed government action delaying sanctions on Russian crude oil to allow imports of jet fuel and diesel refined in third countries amid rising costs. Sir Keir Starmer said the government is not lifting sanctions on Russia in any way whatsoever and described the licences as temporary measures to phase in new sanctions.

Energy experts agreed new sanctions have come in on Russia but noted the licences announced at the last minute had the effect of watering them down. Professor Nick Butler, visiting professor at Kings College London, told the meeting that problems from the conflict included higher inflation, increased borrowing, slower growth, weaker spending and worsening pressure on public finances.

Whitehouse, chief executive of Offshore Energies UK, said the evidence heard at the meeting makes clearer than ever the need to prioritise homegrown energy over imports including the country's own oil and gas. He added that the government must support domestic producers, industries and workers.

Russell Borthwick, chief executive of the Aberdeen & Grampian Chamber of Commerce, said the North Sea is being prematurely closed down while Norway continues production on its side of the line and sells oil and gas back to the UK. He stated this approach is destroying jobs, communities and the UK economy while adding to global carbon emissions.

Sir Keir Starmer told Parliament the UK had introduced a strong new package of sanctions going well beyond existing measures. He said the government issued two targeted short-term licences to phase in the new sanctions and protect UK consumers, describing the approach as standard practice used by previous governments.