As someone who has built a career around, and has invested heavily into, the UK oil and gas industry, I believe it’s time we had an honest, fact-based conversation about the future of our energy security, our economy, and the true meaning of sustainability.
In other words, it’s time to step up and spell out exactly why Britain must balance innovation with realism, and understand that it’s possible to embrace oil, gas, renewables, and engineering excellence all at once, in order to secure its economic and environmental future.
By now, we’re all familiar with the narrative - and indeed legislation - that is convinced that the oil and gas industry is something to be phased out or penalised. Yet those of us who work at the core of this industry know the truth: oil and gas are vital to Britain’s national interests, both today and for decades to come.
Our industry does far more than power the country; it funds public services, supports hundreds of thousands of jobs, drives apprenticeships, advances engineering innovation, and ensures our energy security. And it deserves fair, balanced treatment if we are serious about building a stronger, greener, and more resilient country.
The Economic Engine Behind the Scenes
The UK oil and gas industry is a major contributor to the nation’s economy. In the 2022/23 fiscal year alone, taxes from North Sea oil and gas profits generated £9.9 billion for HM Treasury, a near quadrupling from the previous year. Even with commodity prices easing, the sector still contributed around £5 billion in 2023/24.
Yet while oil and gas operators are taxed at an effective rate of 75%, combining Corporation Tax (25%), the controversial Energy Profits Levy (35%), and the Supplementary Charge, other major companies within other industries pay significantly less.
For comparison, let’s look at three companies we’re all very familiar with…
First off, there’s Tesco, who paid around £247 million in corporation tax, on profits of £2.2 billion; an effective tax rate of approximately 11%. Their rival, Sainsbury’s, paid about £120 million on profits of £690 million; an effective tax rate of around 17%. And slightly different but just as much a feature of our everyday life as any supermarket, Amazon UK Services paid just £18.7 million on profits of £222 million; an effective tax rate of approximately 8%.
Now, let’s repeat the figure paid by oil and gas operators… 75% on their profits.
The question is an obvious one: why is it acceptable to heavily penalise the very industry that provides Britain’s energy security and economic resilience, while allowing some of the largest retailers and global tech giants to pay comparatively minimal rates?
Apprenticeships: Securing the Future of Engineering
For over 50 years, oil and gas has been a cornerstone of British engineering and technical skills development. It remains so today.
Yet apprenticeship numbers tell a concerning story. Since 2010, apprenticeship starts in the “Engineering and Manufacturing Technologies” sector have fallen by over 40%, with particularly steep declines following the introduction of the Apprenticeship Levy in 2017. In 2020/21, only 37,950 engineering-sector starts were recorded. That’s a major drop from the 75,000 in 2015/16.
Although there has been a modest recovery, with engineering and tech apprenticeships accounting for 29% of all apprenticeship starts in 2023/24, the numbers are still fragile.
Within oil and gas specifically, initiatives like the Oil & Gas Technical Apprentice Programme (OGTAP) continue to train vital technicians. Over 2,000 apprentices have come through the programme since 1999, with consistently high retention into industry roles. But without a strong and stable domestic oil and gas sector, these opportunities - and the UK’s future engineering capabilities - are at serious risk.
Renewables Are Vital — But They Are Not a Full Replacement
I fully support renewable energy. Wind, solar, and other technologies must play a growing role in our energy mix. But “mix” is the important word here. We must be realistic - renewables are an addition to, not a replacement for, secure baseload energy.
Wind is intermittent. Depending on the levels of wind, the UK taxpayer pays the price - quite literally. In 2023 alone, wind curtailment – i.e. paying wind farms to turn off because the grid couldn’t handle the load, cost taxpayers approximately £779 million, averaging £2.1 million per day. In 2024, this figure is projected to have exceeded £1 billion, or £3 million per day.
Beyond intermittency, the environmental footprint of wind turbines is often misunderstood. A typical 2MW turbine requires around 1,300 tonnes of concrete and 295 tonnes of steel. Producing these materials is highly energy-intensive, generating significant carbon emissions before a single kilowatt is produced. Also, less know is the fact that turbines require large volumes of oil-based lubricants and significant ongoing maintenance, adding further hidden emissions across their operational life.
While the lifecycle emissions of wind energy remain lower than fossil fuels, the upfront carbon cost is substantial and the entire industry remains heavily reliant on government subsidies. As those subsidies decrease, many large corporations are already reconsidering their investments in renewable energy projects due to financial viability concerns.
Nobody is denying that we need renewables, but they cannot replace the reliability, security, and economic foundation provided by oil and gas.
The Net Zero Debate: What Are We Really Counting?
The UK’s commitment to Net Zero is commendable. However, how we measure our progress demands scrutiny. The following fact embodies the importance of this and tells a story many may not know…
The UK was the world’s largest importer of wind turbines in 2019-2021 and to date, at best 5% are manufactured in the UK, which is having a negative impact on both our economy and our emissions track record.
Currently, the UK’s carbon targets are based solely on territorial emissions, meaning that only greenhouse gases produced within our borders are counted. Imported emissions, for example from goods manufactured abroad are not included in our official totals. This allows the UK to import carbon-intensive products from countries with weaker environmental and labour standards, while claiming domestic progress.
In reality, we are simply outsourcing emissions, not reducing them. Recognising this major flaw, the UK Government plans to introduce a Carbon Border Adjustment Mechanism (CBAM) by 2027, applying a carbon price to certain high-emission imports such as steel, cement, and fertilisers.
But serious questions remain:
Since we have not been properly counting the embedded emissions of imports, how can we know they are genuinely greener or better for the environment? Who will be held accountable for the environmental damage tied to these products once they are on British soil? And critically - are companies currently rushing high-emission products into the UK, knowing full well that by 2027, those same products may not pass future carbon standards?
Without proper oversight today, we risk undermining the very principles of Net Zero by simply shifting environmental harm elsewhere while congratulating ourselves at home. If we are to lead the world in environmental responsibility – which I believe to be a key objective of the UK government - then we must be honest about the full impact of what we consume, as well as what we produce.
The Hidden Costs of Importing Energy
By suppressing our domestic oil and gas sector, the UK is making itself increasingly dependent on foreign energy. In 2024, 43% of the UK’s energy was imported, that’s up from 37% just a few years ago. The majority of our natural gas now comes from overseas, including significant volumes of Liquefied Natural Gas (LNG), which carries up to four times the carbon footprint of domestically produced North Sea gas.
But it was not always like this.
During the 1980s and 1990s, the UK was a net exporter of oil and gas, powered by major discoveries and production from the North Sea. Associated revenues contributed billions to the Treasury, helped reduce national debt, and strengthened Britain’s economy.
At its peak in 1999, the UK was exporting over 900,000 barrels of oil per day more than it was consuming domestically.
Norway, which as we know discovered oil and gas around the same time, chose to take a different path. It created the Government Pension Fund Global, now worth over $1.5 trillion, thus securing the nation’s financial future for generations. Meanwhile, the UK spent its oil and gas revenues year-by-year without building a sovereign wealth fund.
Today, we face a critical choice.
Rather than allowing our energy production to decline further, and paying ever more for imports, the UK could once again harness its own resources, responsibly and efficiently. We could strengthen our economy, create high-value jobs, and even follow Norway’s example by using future revenues to pay down national debt, stabilise our economy, and build real wealth for generations to come.
Suppressing our domestic energy industry in favour of imports not only weakens our economy, it squanders an opportunity to rebuild Britain’s financial strength at a time when it is desperately needed.
A Call for Fairness and Realism
The UK oil and gas industry has been - and remains - a backbone of national strength. Yet today, it is being taxed beyond reason, misrepresented in public debate, and sidelined in national policy discussions.
As someone who previously built a career in the nuclear energy sector, I have seen firsthand how industries can evolve. Decades ago, nuclear was branded as dangerous and dirty. Yet through technology advancements, high safety standards, and relentless engineering improvements, nuclear energy is now recognised globally as one of the safest and cleanest forms of baseload power.
The same principle must be applied to oil and gas.
With decades of experience, world-leading safety standards, and new low-emission technologies emerging every year, there is no reason why our sector cannot continue to evolve and become cleaner, more efficient, and part of a truly balanced energy future. It’s so critical that our national strategy is not based purely on ideology; historically, that approach has an incredibly damaging track record.
We must all remember:
While Britain shows leadership in climate policy, we cannot afford to sacrifice our economy or jeopardise our energy security in pursuit of perfection, while others pursue industrial growth at any cost.
A pragmatic approach is needed; one that combines ambition with realism, leadership with resilience, and innovation with common sense. That includes demanding fair and competitive taxation for critical industries, protecting and growing apprenticeship opportunities in engineering, whilst embracing renewables without abandoning the secure energy base oil and gas provides.
Equally important, we must hold ourselves accountable for imported emissions and recognise the true cost, both economic and environmental, of excessive import dependency.
The future of the United Kingdom depends on energy security, economic resilience, and honest leadership.
It is time to have a grown-up conversation about how we achieve this. Together.
