Offshore Energies UK chief executive David Whitehouse last night wrote to the prime minister as he prepares for a meeting with the US President.
The letter says:
- As we build our energy future, secure homegrown UK energy is best
- It pays UK taxes and supports jobs, the UK economy and the drive to net zero
- The UK must not increase its reliance on imported energy
Full text of the letter follows here:
Dear Prime Minister
We look forward to welcoming you on your first visit to Aberdeen - Europe’s energy capital -since becoming Prime Minister more than a year ago.
As you meet with President Trump and the First Minister, the world will be watching.
This industry and its people have powered the UK for over 50 years. We are proud to produce the energy we need today while scaling up the technologies and infrastructure for tomorrow. With the right support, our North Sea industry can continue to lead the way. Delivering secure jobs, economic growth, energy security and the path to net zero.
The simple thing we are asking you to do is agree that homegrown energy is best. If we are going to use oil and gas, let us produce it here in the UK - responsibly, alongside an accelerated rollout of renewables.
Some argue it makes no difference. But only energy produced here pays UK taxes, supports UK jobs, adds value to the UK economy, and helps drive the UK’s journey to net zero.
Some argue that producing our own oil and gas does nothing for energy security. That is not true. The gas from our North Sea goes directly into the grid to heat 85% of homes across the country. Over 80% of our oil is refined either here in the UK or Europe. With war in Ukraine, our North Sea oil matters. Our North Sea industry matters.
At the heart of this transformation is investment by our industry. Investment in people, in skills, and in the infrastructure needed to deliver net zero. But right now, that investment is at real risk.
The UK will still need 13–15 billion barrels of oil and gas to 2050, even with the expansion of renewables. With the right policies the North Sea can meet half of this demand, contributing over £350bn to the national economy.
Instead, we are breaking records for energy imports, with over 40% of our energy imported in 2024. These imports come with higher emissions, fewer jobs, and pay no UK taxes. That does not make sense.
At the heart of this are people. Jobs are being lost today. This is happening on a scale that would be unacceptable in any other sector.
There is another way. As the Chancellor Rachel Reeves said in the Spending Review, “where things are made and who makes them, matters.” We agree. Consistent polling shows the public agrees. That applies to our energy too.
Some policies in place today - from the Energy Profits Levy to the proposed end of new licensing to the planning and consenting complexity – do not support the government’s stated ambitions. They send the wrong message to investors and communities alike. A modern industrial Britain needs a holistic energy strategy.
We have consistently made the case that domestic oil and gas production can drive growth but only if the current 78% tax rate is reformed.
This is not just about Aberdeen or Scotland. Communities from Grangemouth to Tyneside, Teesside, the Humber, and Merseyside all play vital roles in the UK’s energy supply. A weakened industry has knock-on effects across the entire economy.
We must arrest the trend of decline which has blighted our industrial base. We have lost 30% of our chemical capacity in the last three years. Port Talbot, Lindsey, Grangemouth. We need retention and renewal across the length and breadth of the UK’s industrial heartlands. Decarbonisation must not mean deindustrialisation, and that requires a credible pathway to competitive industrial energy costs. A homegrown pipeline of North Sea to industry makes us more resilient and better able to secure a future also built in Britain.
We are asking for a pragmatic conversation about the future of the North Sea which recognises and prioritises homegrown energy. The outcomes of consultations on licensing, future taxes and the wider North Sea are of national importance.
We invite you to visit our members and hear directly from those whose futures are at stake. We also extend a warm invitation to SPE Offshore Europe in September, where tens of thousands of people will gather to discuss our energy future.
We are committed to your government’s ambition to kickstart growth. The world is watching, and we have much to offer.
A modern industrial Britain should be built on proud industries like ours.
Support homegrown energy. Secure the future of the North Sea.
Yours sincerely
David Whitehouse Chief Executive OEUK