OEUK calls emergency summit as Iran war reignites UK energy security debate

• Offshore Energies UK has urged ministers to prioritise domestic energy production, including North Sea oil and gas alongside renewables, warning that dependence on imported fuels leaves the UK increasingly exposed to geopolitical shocks.
• OEUK says accelerating approval of Rosebank and Jackdaw and introducing the proposed Oil and Gas Price Mechanism could unlock £50 billion of investment and significantly increase domestic production.
• Former BP strategist Professor Nick Butler warned Britain is uniquely exposed to the economic fallout of the crisis, arguing there is no justification for importing fuels that could be produced domestically.

Offshore Energies UK (OEUK), the trade association for the North Sea energy sector, convened senior industry executives on Wednesday to discuss the deteriorating global energy outlook and its implications for Britain’s economy and energy security.

The meeting took place against the backdrop of rising oil prices, growing concerns over global fuel supplies and fresh government measures allowing imports of jet fuel and diesel refined in third countries from Russian crude oil.

OEUK said the developments underlined the need for a more coordinated national response focused on maximising domestic energy production.

“The evidence we have heard at this morning’s meeting makes clearer than ever the need to prioritise homegrown energy over imports, and that includes our own oil and gas,” said OEUK chief executive David Whitehouse.

Whitehouse argued that recent events had exposed structural weaknesses in Britain’s energy system, claiming that decades of policy decisions had eroded domestic production capacity and increased reliance on overseas supplies.

“The decision to relax sanctions to allow the import of jet fuel and diesel from third countries refining Russian crude is evidence that decades of poor policy decisions have undermined our energy security and industrial resilience,” he said. “The government must support our own producers, industries, and workers.”

At the centre of the industry’s message is a renewed push for North Sea investment. OEUK said early introduction of the Treasury’s proposed Oil and Gas Price Mechanism, combined with accelerated approval of the Rosebank and Jackdaw developments, could unlock £50 billion of investment and increase cumulative UK offshore production between now and 2050 – from fewer than four billion barrels to more than seven billion.

The trade body stressed that its position is not limited to hydrocarbons, arguing that both oil and gas and renewable energy should be prioritised as part of a broader domestic energy strategy.

Bleak outlook

A keynote presentation was delivered by Professor Nick Butler, visiting professor at King’s College London and former group vice-president for strategy and policy development at BP. Butler painted a bleak picture of the economic consequences of the Iran conflict, warning of higher inflation, weaker growth, reduced investment and mounting pressure on public finances.

He argued that Britain’s policy approach had become increasingly difficult to justify at a time of heightened global instability.

“We are the only country in the world that’s cutting back on its potential oil and gas production apart from Denmark,” Butler said.

“I cannot see the moral, economic or environmental reason for importing oil and gas when we can produce it ourselves. In the face of this current crisis we need to maximise production of every resource we have.”

The intervention reflects a broader shift in industry messaging since the outbreak of conflict in Iran. While debates around North Sea development have traditionally centred on climate policy and net-zero targets, energy security has rapidly re-emerged as a dominant theme as governments scramble to manage supply disruptions and rising prices.

OEUK pointed to International Monetary Fund analysis suggesting the UK could suffer the largest growth impact from the consequences of the Iran war among the G7 economies, partly because of its dependence on imported energy.

The organisation argued that the lesson from both the Ukraine and Iran crises is clear: countries that maintain diverse domestic energy production are better equipped to withstand external shocks.

For ministers however, the debate remains politically complex. The government continues to pursue its Clean Power ambitions while facing pressure from industry groups, trade unions and some economists who argue that domestic oil and gas production remains strategically important during the transition.

The emergency summit highlights how rapidly energy security has returned to the centre of the policy agenda, raising fresh questions about the balance between climate goals, economic resilience and the role of the North Sea in Britain’s future energy mix.