OEUK Holds Emergency Talks with Industry Leaders

Industry body Offshore Energies UK (OEUK) announced, in a statement posted on its website recently, that it had held emergency talks with industry leaders “to call for a new coordinated response to the escalating global energy crisis caused by the war in Iran”.

OEUK noted in the statement that the meeting came as the UK government moved to relax sanctions on Russia imposed since the invasion of Ukraine, allowing the import of jet fuel and diesel from third countries.

A general trade license for sanctioned processed oil products was published on the UK government website on May 19. A notice accompanying the license highlighted that it “permits the import into the UK of the following prohibited goods processed in third countries from Russian crude oil; diesel (HS 2710 19 42 or HS 2710 19 44), jet fuel (HS 2710 19 21)”.

“Alongside the import of these goods, the license permits the provision of certain services and actions related to their import,” the notice pointed out.

In its statement, OEUK urged the “immediate prioritization of domestic energy production”,  emphasizing the need for North Sea oil and gas as well as renewables.

“The lessons from Iran and Ukraine show that countries that produce their own energy are more resilient,” OEUK said in the statement.

OEUK noted in its statement that early introduction of the UK Treasury’s proposed Oil and Gas Price Mechanism (OGPM), alongside accelerated approval of the North Sea’s Rosebank and Jackdaw projects, would unlock GBP 50 billion ($61.1 billion) of investment, “helping boost North Sea oil and gas production from fewer than four billion barrels under the current regime, to over seven billion barrels between now and 2050”.

Major Energy Cos

OEUK highlighted in its statement that the emergency meeting was attended by executives from major energy companies active in the North Sea. It revealed that a presentation on the impact of the war in Iran was given by Professor Nick Butler, Visiting Professor at Kings College, London, who previously served as Group Vice President for Strategy and Policy Development at BP p.l.c. and subsequently as Senior Policy Adviser to UK Prime Minister Gordon Brown.

“Professor Butler set out the problems of higher inflation, increased borrowing, slower growth, weaker spending and investment, and worsening pressure on public finances as a result of the war,” OEUK noted in the statement.

At the meeting, Butler said, “I cannot see the moral, economic or environmental reason for importing oil and gas when we can produce it ourselves”, the statement revealed.

“In the face of this current crisis we need to maximize production of every resource we have,” Butler added, according to the statement.

David Whitehouse, the chief executive of OEUK, said in the statement, “the evidence we have heard at this … meeting makes clearer than ever the need to prioritize homegrown energy over imports, and that includes our own oil and gas”.

“The decision to relax sanctions to allow the import of jet fuel and diesel from third countries refining Russian crude is evidence that decades of poor policy decisions have undermined our energy security and industrial resilience,” he added.

“The government must support our own producers, industries, and workers,” he continued.

Rigzone has contacted HM Treasury (HMT) and the UK Department for Energy Security and Net Zero (DESNZ) for comment on OEUK’s statement. At the time of writing, neither have responded to Rigzone.

A fact sheet posted on the UK government website on March 6 stated that “the biggest threat to energy security for families and businesses in the UK is continued reliance on unstable fossil fuel markets”.

“That is why we’re taking back control with clean, homegrown power to ensure our energy security, protect the British people and bring down bills for good,” the fact sheet added.

“To support this mission, we’re delivering the biggest ever investment in homegrown clean power in British history,” it continued.

To contact the author, email andreas.exarheas@rigzone.com