Tories Pledge to Make North Sea Oil and Gas the 'Cornerstone' of Economy

Strategic Insights -

As the Tory government remains committed to the extraction of North Sea oil and gas, leader Kemi Badenoch has pledged to overturn a ban on supporting UK companies that export oil and gas technologies abroad, calling it a "mad decision". Badenoch will make this pledge in a speech at the Society of Petroleum Engineers Offshore Europe conference in Aberdeen, where she will emphasize that the Tories see North Sea oil and gas as a "cornerstone of Britain's future", in contrast to Labour's approach.

Key Takeaways:

  • The Tory government aims to make North Sea oil and gas the "cornerstone" of the economy, according to Kemi Badenoch.
  • Badenoch will pledge to overturn the ban on supporting UK companies that export oil and gas technologies abroad, which she calls a "mad decision".
  • The Tories have pledged to end "Labour's ban" on new oil and gas licences, allowing exploration work and extraction of oil and gas.
  • The North Sea Transition Authority would be renamed the North Sea Authority, with an overarching mandate to "maximise the extraction of our oil and gas".
  • The government plans to reverse a ban on providing financial or promotional support for the fossil fuel energy sector overseas.
  • David Whitehouse, chief executive of Offshore Energies UK, estimates that the UK will need between 10 billion and 15 billion barrels of oil and gas between 2025 and 2050.
  • The UK is currently on course to produce less than four billion barrels from the North Sea, with excess of six billion barrels seen as a realistic target.

Statistics:

  • The UK will need between 10 billion and 15 billion barrels of oil and gas between 2025 and 2050 (David Whitehouse).
  • The UK is currently on course to produce less than four billion barrels from the North Sea.
  • Excess of six billion barrels seen as a realistic target for the country (David Whitehouse).
  • The Tories plan to "maximise the extraction of our oil and gas" through the newly renamed North Sea Authority.

Sources:

  • The Daily Telegraph, 1 September 2025
  • PA Archive, 1 September 2025
  • SPE Offshore Europe (@SPE_OE), 1 September 2025