No new oil wells are to be drilled in the British North Sea this year for the first time since 1964 as the government's 78% windfall levy, plus exploration restrictions, bring an early sunset to the sector.

A survey of offshore operators has found that zero exploratory wells – the vital first stage of discovering new resources – have been drilled and none are planned.

By contrast Norway, whose geology is similar, has seen 30 new exploration wells drilled this year, with nine more expected before year end.

The collapse follows a windfall tax on oil and gas profits, which Labour raised to 78pc, and Ed Miliband's ban on licences for exploratory drilling in new areas.

Exploratory drilling is still allowed in areas licensed before the ban but fear of renewed government tax raids means there is no interest.

The first offshore wells were drilled after the UK Continental Shelf Act 1964, with the first gas field discovered the following year by BP. 

The research by Westwood Global Energy Group, comes amid rising political tension over the future of North Sea oil and gas.

The Energy Secretary, is due to publish a revised North Sea strategy before the Budget, aimed at restarting some drilling. Rt Hon Rachel Reeves is considering cuts in the windfall levy.

But Westwood’s findings suggest any changes will be too late, with the UK oil and gas industry in rapid decline.

Westwood's Alyson Harding said: 
“In 2025 to date, oil and gas companies in the UK have not initiated the drilling of any offshore exploration wells.

“This is the first year since 1964 when the first exploration well was spudded. Investor sentiment ... is at an all-time low, due to the tax regime and uncertainties around government policies and regulation.”

UK reservoirs tend to be small by world standards and so only last for a relatively short time before becoming depleted, so finding and drilling new fields is essential.

The slowdown in drilling means that last year the UK had to import 43 million tonnes of crude oil plus another 31 million tonnes of refined oils, along with 43 billion cubic metres of gas.

Robin Allan, chairman of BRINDEX, trade body for exploration companies, said: 
"With the collapse of exploration drilling, British homes and industry are being fuelled with imported oil and gas instead of our own resources.”

A spokesman for the Department for Energy Security and Net Zero said: 
“Oil and gas production will be with us for decades to come, and we are working with industry to manage our existing fields for the entirety of their lifespan.”

KeyFacts Energy news: North Sea Focus