Reports argue against increased drilling in the UK North Sea
A Green Alliance briefing highlights wasted gas, while Oxford Smith School identifies cost savings from renewables.
The Green Alliance briefing Wasted North Sea Gas Undermines Calls for more UK Drilling finds UK North Sea oil and gas operators waste roughly £300mln-worth of gas through routine flaring and venting each year.
The report says that, if captured instead, the lost gas could be enough to heat around 570,000 homes, equivalent to almost a third of the projected peak gas production of the proposed Jackdaw gas field.
Gas that is vented and flared reportedly contributes to climate change and harmful air pollution.
The briefing says the UK Government should enshrine a ban on routine flaring and venting in law through the upcoming Energy Independence Bill, and the regulator should accelerate its crackdown on these practices, before any new drilling is entertained.
Impact of Oil and Gas Exploitation in the North Sea on UK Household Energy Bills, a rapid analysis from Oxford Smith School, UK, highlights that maximising oil and gas extraction from the North Sea would save households just £16-82 per year on their energy bills compared to the £441 a year from transitioning completely to renewables.
It emphasises that the figure for oil and gas only applies if the extra tax revenues collected were solely used to help households offset their energy bills.
The study was conducted using oil and gas prices as of January 2026, prior to the spike caused by the Iran war, as these are representative of realistic medium-to-long-term prices.
Dr Anupama Sen, Head of Policy Engagement at the Smith School of Enterprise and the Environment, explains, ‘If the government did not choose to do this, there would be no discernible benefit to UK households at all, because oil and gas prices are set on and influenced by international markets.’
The authors also clarify that the extent of electrification within a household would determine the level of savings gained from renewables.
They also say achieving this requires effective subsidy and financing mechanisms to support upfront investment on fittings such as heat pumps and insulation.
