Speaking at OEUK’s Industry Conference today, OEUK Chief Executive David Whitehouse will issue a stark warning about the UK’s energy vulnerability and call for urgent action to unlock the “homegrown dividend.” 

Speaking to a conference of industry representatives, Mr Whitehouse is expected to say:  

“The Prime Minister is right to say that energy security is national security. 

Today, the UK is dependent on imports for almost 40% of its total energy. With global tensions rising, including the latest escalation in Iran, this level of dependence leaves us exposed. In a volatile world, relying on others for our energy is not a position of strength.  

Energy production in the UK is at historic lows. Meanwhile, energy prices in the UK are over three times the equivalent of the US and now exceed many of our European counterparts. 

While the announcement this week that government will reduce electricity bills for over 7,000 businesses and increase support for energy intensive industries will provide much needed respite, we know it is a short-term fix. 

Our manufacturing base cannot thrive without long-term energy cost reform, backed by secure domestic supplies.  

That means accelerating the build out of our renewable energy alongside the responsible production of our domestic oil and gas.  

It’s not an either/or. It’s a both/and.  

In the early 2000’s the UK was a net exporter of energy. It is no coincidence that our energy prices were competitive, and our economy benefitted. 

That is the homegrown dividend in action.   

The government’s new 10-year Industrial Strategy rightly prioritises energy, regional growth, and economic resilience.  

 The government’s Clean Power 2030 ambition is important and must prioritise growth in the UK supply chain alongside a focus on reducing overall system costs. 

 To build out at pace, our wind developers need policy certainty, alongside the strong market signals.  

 We do need to rule out zonal pricing. Allocation round 7 must be a success. 

 I am delighted that we are joined today by Dan McGrail, CEO of GB Energy.  

GB Energy can play a critical role in meeting that ambition. As a sector, we are committed to playing our part in making GB Energy a success. 

 We are all committed to making British energy a success.  

 So, production of homegrown oil and gas also must be prioritised over imports. As recent reports highlight, the UK could meet half of its oil and gas needs from the North Sea, almost doubling what is currently forecast adding an additional £165 billion to the UK economy. 

 The rapid decline since 2020 in North Sea oil and gas has been driven by policy decisions not geology.  

 Significant opportunities remain if we act. 

 The majority of remaining production will come from existing licences, that is true, but we need the responsible churn of new licences. 

 Without them, we send a clear message to investors: look elsewhere. We produce less of the energy we need; our country is poorer and more reliant on imports often with a higher carbon footprint. 

 The windfall tax continues driving investment away from the UK.  

 The sector needs action now to secure jobs, boost energy security, and build for the future. That means a firm commitment from government to deliver a long-term competitive tax regime in 2026.  

 Waiting until 2030 is too late.  

 It is a simple truth: high tax rates that drive away investment and ultimately deliver lower growth and lower tax revenues.  

 We must unlock the homegrown dividend. 

 Our Chancellor said, “where things are made, and who makes them, matters”.  

 I agree and our public do too. 

 For too long we have watched the demise of industries across the UK. Over the past 50 years we have lost 60% of our industrial workforce.  

 We are simply becoming more reliant on imports for our energy, our fuel, our chemicals, our steel, and our feedstock. 

 We have a vision of a modern industrial Britain, powered by secure, affordable, homegrown energy.  

 A vision that sees the trend of deindustrialisation seen throughout the UK reversed by the transformation of key energy intensive industries.  

 A vision that sees benefits across the United Kingdom. From Shetland to Southampton. 

 A vision where the UK’s place in the world is more stable, more secure, more prosperous because of its industrial capabilities. 

 The Prime Minister said the industrial strategy marks a turning point for Britain’s economy 

 Continued domestic production. A competitive tax regime. Certainty for our developers. That is the turning point we need.  

 To our Government – I ask you to continue to engage. listen to our sector. listen and act.”

KeyFacts Energy Industry Directory: Offshore Energies UK