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2026-09-15 19:08:08
[UK Energy Sector Calls for Tax Cuts and Easing; North Sea Gas Projects Expected to Boost Domestic Supply] ⑴ The UK offshore energy agency OEUK stated that if the Labour government lowers oil and gas-related taxes and relaxes restrictions on North Sea development, 111 new oil and gas projects could be launched, with a total value of approximately £48 billion, potentially increasing domestic oil and gas self-sufficiency to 50%. ⑵ Currently, the UK relies on imports for over 40% of its oil and gas, making its energy resilience relatively weak. The industry is calling for the abolition of the current 38% windfall profits tax on oil and gas by January 2027, and for the new oil and gas revenue tax to be implemented in 2027 instead of 2030, with the new tax only levied when oil and gas prices surge. ⑶ Industry executives warn that further delays in the approval of the Jack Dock gas field will impact the UK's gas supply during the 2026-2027 winter. This field could meet up to 6% of domestic natural gas demand. While the Rosebank and Jack Dock projects were previously approved by the previous Conservative government, they were stalled due to an environmental lawsuit in Scotland. (4) The North Sea oil and gas industry provided approximately 177,000 jobs in the UK in 2024; no exploration wells were drilled in the UK North Sea in 2025, and the Labour Party has suspended the issuance of new exploration permits for the area. (5) Environmental organizations oppose this, arguing that new drilling will not lower residents' energy bills, will not contribute to energy security, and that new fossil fuel extraction will exacerbate the risk of climate warming. (6) The UK government responded that existing tax arrangements provide long-term certainty for the industry, while continuing to invest in clean energy industries, balancing employment and energy transition goals.
