Press Releases

There are several reasons for this:

•The war in Ukraine and rising energy prices have made it very clear that the public wants a secure energy supply. Data from the Office for National Statistics suggests the UK spent a record £117 billion on energy imports in 2022. That was double the total for 2021 and equivalent to £4,200 per every UK household. To safeguard our future energy security, we must no longer be forced to rely on imports from other countries.

•Oil and gas currently supply 75% of UK energy with 56% coming from national waters. Demand and forecasts suggest oil and gas will continue to play a large part in our energy supply for 10-20 years at least. Renewables could not currently make up the short fall.

•More than 200,000 jobs are supported by the UK oil and gas industry through operators and the supply chain. Their loss would have a catastrophic effect on the national economy and livelihoods around the country.

•The industry contributes a vast sum to the UK economy (more than £28bn in GVA last year) with the UK Government forecasting the Energy Profits Levy (EPL) will add an additional £5 billion this year amidst what is predicted to be recession.

As the industry body for the Drilling Contractor community we are particularly concerned about drilling rigs, uniquely designed for the North Sea, leaving our waters unlikely to return. Drilling rigs are the ‘tip of the spear’ responsible for drilling the oil and gas wells required to support production. These rigs are also vital to the decommissioning of the hundreds of wells that need to be removed from the UKCS. Furthermore, drilling rigs and their personnel will play a critical role in meeting Net Zero through the facilitation of Carbon Capture Utilization and Storage (“CCUS”). Reduction in the available fleet size will severely hamper all of the above.

To preserve our oil and gas industry, we ask for:

•A mature, pragmatic, joined up and long-term approach to our country’s energy provision.

•A recognition of the impending energy crisis that the public will face if we do not de-risk investment in the North Sea, but rather kill the golden goose by rhetoric and stifling taxation.

•An orderly energy transition over a measured period with tangible goals.

Our recent attendance at the UK Government’s British Offshore Oil and Gas Industry All Party Parliamentary Group was an encouraging start to redressing the balance. But more vocal support of our oil and gas industry from policymakers is required urgently to avoid an imminent economic and energy supply catastrophe on a national scale.

We respectfully request your support in this critical matter. We would welcome further dialogue to determine how the industry and the Government can work effectively together for the continued benefit of the national economy and to meet the energy needs of the UK public.

For and on behalf of IADC North Sea Chapter

Darren Sutherland Chairman