A fresh row has broken out over the future of the North Sea after the head of a global energy watchdog said the UK should avoid expansion of North Sea oil and gas production.
Offshore Energies UK hit back after Fatih Birol, chief of the International Energy Agency, ignored mounting UK job losses and told The Guardian that new production would not make any significant difference to the current energy crisis.
His intervention sparked an immediate response from David Whitehouse, who accused the IEA chief of contradicting his own organisation’s warnings about the need for secure gas supplies.
He said: “Yesterday, 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.
“However, comments from the IEA’s executive director, reported in the Guardian on the same day, would do the opposite.
"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.”
Mr Whitehouse warned that increasing dependence on imported liquified natural gas would heighten energy security risks and damage the domestic supply chain.
He said: “Growing reliance on carbon-intensive liquified natural gas imports leaves the UK increasingly exposed to geopolitical risk and raises global emissions from production. It also threatens the jobs and skills critical for the energy transition by accelerating the decline of our offshore energy sector.”
He added that the North Sea still had substantial remaining potential and should remain part of a balanced transition strategy.
Mr Whitehouse said: “There is significant potential left in the North Sea. As the second largest producer in Europe, the UK along with Norway is an anchor of European energy security.
"With the right tax and regulatory policies, the UK can still produce over seven billion barrels of oil and gas between now and 2050 - significantly higher than the less than four billion we are currently headed for. Around 75% of UK energy demand is met by oil and gas and all decarbonisation scenarios show they will continue to be essential through to 2050.”
He also renewed calls for reforms to the fiscal regime, arguing a replacement for the current windfall tax could unlock fresh investment.
Mr Whitehouse said: “We have presented clear analysis to the government that early introduction of the Oil and Gas Price Mechanism (OGPM), a permanent windfall tax to replace the Energy Profits Levy, would unlock £50 billion of new investment.
"This would allow the UK to meet over half of domestic demand, enhance energy security, increase tax revenues, protect jobs, and reduce reliance on carbon-intensive imports, as part of balanced energy transition.”