David Whitehouse chief executive of Offshore Energies UK has presented evidence to the Energy Security and Net Zero select committee showing that rapid implementation of the Treasury’s proposed Oil and Gas Price Mechanism (OGPM) would radically boost revenue from the North Sea oil and gas industry.

Replacing the defective Energy Profits Levy with the government-proposed OGPM from April 2027 instead of waiting until its planned introduction in 2030, would raise an additional £2.8 billion in direct taxes paid by the industry over the next decade, and a further £10.6 billion in payroll taxes from the workforce. This combined revenue would mean an extra £13.4 billion for government coffers over the next decade.

In his evidence to the House of Commons Energy Security and Net Zero Committee inquiry, Managing the Future of UK Oil and Gas, Mr Whitehouse argued that the current windfall tax is actively undermining investment — leaving projects uneconomic, accelerating production decline, and ultimately reducing the tax revenues available to government.

He set out analysis showing that, under a more competitive regime, coupled with support for developments such as Rosebank and Jackdaw, the UK could deliver:

1.1 billion additional barrels by 2035, meeting half of the UK’s demand in that period.
Add more than £60 billion to the UK economy over the next decade.

This would slow the current projected 30–40% decline in domestic production, reducing reliance on imports and strengthening the UK’s economic resilience.

Without change, the UK is set to become increasingly dependent on imported liquefied natural gas (LNG), particularly from the United States and Qatar. Under OEUK analysis, LNG imports could supply up to 50% of UK gas demand within a decade.

By contrast, a stronger domestic sector would limit LNG dependency to around 4% by 2030 and 6% by 2035.

This matters not just for security but for emissions. Imported LNG has roughly four times the carbon footprint of UK-produced gas, meaning declining domestic production risks increasing global emissions rather than reducing them.

David Whitehouse said: “Domestic oil and gas production doesn’t just supply energy — it gives the Chancellor choices. It generates tax revenues, supports jobs, and strengthens the economy. Those are the levers government can use to support households — including those in fuel poverty.

“Our analysis shows that a stable North Sea tax regime coupled with supportive policy could generate enough additional tax revenue to eliminate fuel poverty altogether.

“It is estimated that approximately 50% of the UK energy demand to 2050 will be met by oil and gas. The choice is whether we produce it ourselves with all the benefits for UK jobs, economic value, taxes, or rely on imports with none of those benefits.

“Accelerated production decline in the UK is a policy choice not a geological inevitability. It leaves us poorer, less able to support vulnerable communities, more exposed to geopolitical risk, and reduces energy security for the UK and our European partners.”