"In the recent context of sky-high gas prices and concerns about energy security, it might be easy to see why the Government thinks that the answer might be more domestic supply. However, this is a narrow focus on the wrong solution. First, when it comes to oil, around 80% of the UK production is exported and the countries refineries then import oil. In 2022 the UK imported 43.15 million tons of crude oil, and exported 51.9 million tons, resulting in a trade deficit of 8.75 million tons of crude oil in this year. Second, while it is true that we consume all of the gas produced offshore from UK waters, the rate of production is in terminal decline. Going forward the level of import dependence will be determined by the level of gas demand, rather than increases in supply.

"The government rightly suggests that domestic oil production comes with lower carbon emissions than imported liquefied natural gas, but the real answer is to reduce domestic gas consumption, this means improving the energy efficiency of our buildings, replacing our gas boilers with heat pumps where possible and finding ways to decarbonise industrial production. Finally, it is accepted that the North Sea is a mature basin in decline, new licensing rounds will take time to make a material difference and at best only arrest the rate of decline. The real route to security, affordability and environmental sustainability is to reduce oil and gas demand, not seek squeeze the last barrel out of the North Sea."