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Why Expanding UK Oil and Gas Drilling Will Not Reduce Bills or Strengthen Energy Security
A new analysis by Professor Gavin Bridge, DEI Fellow, published by the UK Energy Research Centre, demonstrates that increasing oil and gas drilling in the North Sea will neither reduce household energy bills nor deliver enhanced energy security for the United Kingdom.
Professor Bridge argues that, despite renewed political and public interest in expanding domestic production during periods of global instability, the underlying economic realities make such proposals ineffective. The prices paid by UK consumers for oil and gas are determined by international markets, not by the origin of supply. Consequently, whether fuels are extracted from the UK Continental Shelf or imported from abroad, domestic production has no meaningful influence on the costs borne by households.
The analysis further notes that UK oil and gas production is insufficient in scale to affect global supply and pricing. Even if new licences were issued immediately, additional production would take several years to come online, rendering it irrelevant to current market disruptions. Moreover, most UK‑produced oil is sold directly into international markets, providing no guarantee of domestic availability or price stability. For gas, although physically connected to the UK via pipeline infrastructure, wholesale prices still track global benchmarks, offering no insulation from international volatility.
The research underscores that demand reduction measures, rather than expanded drilling, should form the cornerstone of a credible long‑term energy‑security strategy. Professor Bridge highlights that the majority of the North Sea is already licensed, and the availability of additional licences does not significantly influence extraction rates. Historical legislation has required regulators to maximise economic recovery; however, investors often favour more attractive opportunities elsewhere, further limiting the impact of additional licensing rounds.
To explore Professor Gavin Bridge’s full assessment and the evidence behind these findings, please follow the link below: