-- The UK could produce over 7 billion barrels by 2050 and unlock 50 billion British pounds ($67.80 billion) investment, Offshore Energies UK chief said in a Saturday statement, pushing back on comments from the International Energy Agency.
OEUK Chief Executive David Whitehouse pushed back on International Energy Agency Executive Director Fatih Birol's claim that "the damage is done" and opposed calls to limit North Sea expansion, responding to IEA remarks reported in The Guardian.
Whitehouse said, "Yesterday [Friday], the IEA's Q2 gas market report argued that the global economy should strengthen security of the gas supply in the wake of events in the Middle East."
He said the IEA's executive director comments "would do the opposite," adding that discouraging UK Continental Shelf investment contradicts calls for continued gas investment and supply flexibility.
"Talking down production in the North Sea and discouraging investment in the UK Continental Shelf contradicts the IEA's own analysis calling for continued investment in gas and the importance of supply flexibility," Whitehouse said.
He added that growing reliance on carbon-intensive liquefied natural gas imports leaves the UK "increasingly exposed to geopolitical risk and raises global emissions from production."
Whitehouse said the shift would endanger jobs and undermine critical skills needed for the energy transition by accelerating the decline of the offshore energy sector.
"There is significant potential left in the North Sea," he said, noting the UK and Norway act as key anchors of European energy security as major regional producers.
He added that the UK can still produce over 7 billion barrels between now and 2005, with the right tax and regulatory policies, noting that this figure is "significantly higher than the less than 4 billion we are currently headed for."
Oil and gas meet about 75% of UK energy demand and will remain essential across all decarbonization pathways through 2050, the OEUK chief said.
OEUK has advised the government that early adoption of the Oil and Gas Price Mechanism, which would replace the Energy Profits Levy, could unlock 50 billion British pounds in fresh investment.
Whitehouse said the move would help meet over half of domestic demand, strengthen energy security, boost tax revenues, safeguard jobs, and cut reliance on carbon-intensive imports.