Is More North Sea Drilling the Answer to the UK's Energy Price Crisis?

The question isn't whether the North Sea still matters, it's whether Britain can maximise its value while preparing for the energy economy of tomorrow.

As energy prices continue to dominate conversations around household finances, industrial competitiveness and economic growth, one question keeps resurfacing: should the UK increase oil and gas production from the North Sea?

The debate has intensified following comments from US President Donald Trump, who urged Britain to "DRILL, BABY, DRILL," arguing that the UK has failed to take advantage of one of its greatest natural resources. Trump also criticised UK tax policies affecting North Sea development and questioned why Britain imports energy despite possessing domestic reserves.

His comments have reignited a debate that extends well beyond politics. For businesses, manufacturers and consumers, the real question is whether increased North Sea production would genuinely reduce energy costs—or whether Britain's long-term energy future lies elsewhere.

The UK's Energy Challenge

The UK's energy dilemma is not simply one of supply.

Although Britain still produces oil and gas from the North Sea, it remains heavily exposed to international energy markets. Gas prices, in particular, are largely determined globally rather than domestically, meaning events thousands of miles away can quickly influence bills paid by British households and businesses.

This dependence became painfully clear following Russia's invasion of Ukraine and subsequent global energy market volatility.

The challenge for policymakers is therefore balancing three priorities:

• Energy security

• Affordable prices

• Long-term sustainability

Achieving all three simultaneously is far from straightforward.

The Norway Comparison

Much of the debate centres on comparisons with Norway.

Both countries share the North Sea, yet they have taken very different approaches.

Norway has continued investing in offshore oil and gas while simultaneously building one of the world's largest sovereign wealth funds from petroleum revenues. Today, that fund is worth well over US$1 trillion and invests globally on behalf of future generations.

The UK, by contrast, largely used North Sea revenues to support public spending during previous decades rather than creating a comparable long-term investment fund.

Norway also retains significant state involvement in its energy sector and still has a larger proportion of recoverable North Sea resources remaining. Estimates suggest around 57% of Norway's expected recoverable resources have been produced, compared with approximately 93% of the UK's recoverable North Sea oil and gas.

This distinction matters.

Britain's North Sea is considered a mature basin, meaning the largest and most accessible reserves have already been extracted.

Norway's success wasn't built solely on extracting resources, it was built on turning them into long-term national wealth.

Would More Drilling Reduce Bills?

This is where the debate becomes more nuanced.

Supporters argue that greater domestic production improves energy security, supports skilled employment, strengthens tax revenues and reduces reliance on imported fuel.

Critics counter that additional drilling would have only a limited effect on consumer prices because oil and gas are traded on international markets.

Research cited by energy experts suggests that even major new North Sea developments would make only a modest difference to UK gas imports, while any new production could take years to reach the market.

In other words, increasing production may improve resilience and supply security, but it is unlikely to provide an immediate solution to high household energy bills.

A Broader Economic Opportunity

Perhaps the bigger opportunity lies elsewhere.

The North Sea is no longer simply about extracting oil and gas.

It is becoming a centre for offshore engineering, carbon capture, hydrogen production, offshore wind, subsea robotics, digital monitoring and advanced marine technologies.

Many of the skills developed by the offshore energy industry are transferable across these emerging sectors.

This creates significant opportunities for engineering firms, manufacturers, software companies, environmental specialists, maritime businesses and innovative SMEs.

Rather than viewing the North Sea purely as yesterday's energy story, Britain has an opportunity to position it as a platform for tomorrow's energy economy.

Lessons from Norway

Norway demonstrates that natural resources can support long-term prosperity when combined with strategic investment.

Its success has been built not only on continued production but also on stable regulation, long-term planning, investment in technology and disciplined management of energy revenues.

The UK's challenge is different.

With fewer remaining reserves, Britain's greatest opportunity may lie in combining responsible management of existing oil and gas production with accelerated investment in the industries that will define future energy markets.

This is not necessarily an either-or debate.

Energy security, innovation and decarbonisation can progress together if supported by coherent long-term policy.

Looking Ahead

The question facing Britain is no longer whether the North Sea still matters.

It clearly does.

Oil and gas will continue to play an important role in the UK's energy mix for years to come, while domestic production can contribute to energy security, skilled employment and industrial capability.

However, expecting increased drilling alone to solve Britain's energy price challenges risks oversimplifying a far more complex issue.

Future prosperity will depend on building an energy system that is secure, affordable and resilient—one that combines existing resources with investment in new technologies, smarter infrastructure and homegrown innovation.

For businesses, the opportunities extend well beyond oil production.

The companies that thrive over the next decade may be those developing offshore engineering solutions, digital technologies, clean energy infrastructure, advanced manufacturing and the specialist services that support the wider energy transition.

At Future UK, we believe Britain's energy future should not be framed as a choice between the past and the future. The greatest opportunity lies in using today's strengths to build tomorrow's industries.

Whether through responsible resource management, next-generation energy technologies or world-leading engineering, the UK's next energy success story will almost certainly be defined by innovation as much as extraction.

The future belongs to the businesses prepared to power it.

Britain's greatest energy opportunity may not lie in choosing between oil and renewables, but in combining both to build a more secure, innovative and prosperous future.

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