Analysis reveals that new drilling licences in UK waters are poised to exert a negligible impact on the country’s energy independence.
The study by the Energy and Climate Intelligence Unit (ECIU) focuses on the declining significance of oil extraction from the UK Continental Shelf, predominantly the North Sea, for the UK’s energy security.
Despite the impending second reading of the Offshore Petroleum Licensing Bill on 8th January, the ECIU’s findings indicate that oil from new licences would constitute less than 1% of the UK’s fuel consumption in 2030.
The government’s recent acknowledgement that 80% of oil from new fields will be traded internationally casts doubt on the proposed enhancement of energy security.
In 2022, production from UK oil fields via UK refineries represented a minor fraction of petrol, road diesel and aviation fuel used in the UK, a trend expected to intensify with diminishing oil production.
Professor Gavin Bridge, Fellow of the Durham Energy Institute at Durham University, said: “The reality is very little of the oil pumped from the North Sea is refined and sold on British soil and even then the price is largely dictated by international markets.
“The notion that more drilling on the continental shelf boosts our energy security doesn’t stand up to scrutiny. Most of the oil is extracted by private or foreign state-owned companies over which the government has little control.”
