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North Sea Gas: UK Should Boost Domestic Production

Financial Times Companies •
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The Iran conflict has reignited debate over Britain's North Sea energy policy, with calls from across the political spectrum to increase domestic fossil fuel production. Former Just Stop Oil funder Dale Vince and business groups now join President Trump in urging the UK to optimise its North Sea reserves.

Successive UK governments have restricted production through high taxes and licensing bans, while the 78 per cent energy profits levy has deterred investment. Britain currently uses gas for about one-third of its energy consumption, with over 40 per cent produced domestically. The rest comes from Norway or as imported liquefied natural gas, primarily from the US and Qatar.

UK-produced natural gas offers significant environmental advantages, with imported LNG creating almost four times the carbon emissions of domestic production. The North Sea could provide up to 7.5 billion barrels of oil equivalent by 2050, meeting half the UK's needs under net zero scenarios. This would require regulatory reform and could unlock £385 billion in economic value, while supporting 200,000 workers and maintaining critical infrastructure for the green transition.