Norway is embarking on an ambitious strategy to unlock billions of pounds worth of fossil fuels from the North Sea, reactivating previously decommissioned oil and gas fields located near British waters. This move, driven by advancements in extraction technology, highlights a significant divergence in energy policy with the United Kingdom, which has recently enacted a ban on new oil and gas exploration licences.
A recent report by the Norwegian Offshore Directorate, a government agency, confirms that technological improvements have made economically unviable fields accessible once more.
The agency stated: “One important reason why production remains at such high levels is that the fields are producing for longer than originally planned because new and improved technology has allowed us to continuously improve our understanding of the subsurface.”
This proactive approach has seen Norway’s oil production soar to a 16-year high in 2025, maintaining its position as Europe’s largest gas supplier following geopolitical shifts. Key to this revival is the “Previously Produced Fields (PPF)” project in the Greater Ekofisk Area, which secured a final investment decision in December 2025 to redevelop gas-condensate fields previously shut in during the late 1990s.
In contrast, the UK government, under Energy Secretary Ed Miliband, has moved to cease issuing new oil and gas exploration licences in the North Sea. This policy, a core Labour manifesto pledge, aims to align the UK with its climate commitments. While new exploration licences are halted, the government has indicated it may permit new offshore projects linked to existing infrastructure through “tie-back” developments.
The UK’s shift comes amidst a significant decline in domestic hydrocarbon production and increasing import dependency. Government projections indicate that the UK’s gas production is set to fall from 30 billion cubic metres (bcm) to 7 bcm by 2035, with oil output decreasing from 35 million tonnes to just 13 million tonnes.
This trajectory suggests the UK will be approximately 80% dependent on imports, primarily from Norway and the United States, to meet its projected annual needs of nearly 40 bcm of gas and 40 million tonnes of oil products in 2035. This growing reliance carries a substantial economic cost, with Britain reportedly spending £20.6 billion on Norwegian oil and gas imports in the last 12 months.
The domestic offshore sector is already feeling the impact. Data from Robert Gordon University indicates that the UK oil and gas workforce could shrink from 115,000 in 2024 to between 57,000 and 71,000 by the early 2030s, equating to approximately 400 job losses every two weeks.
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Ashley Kelty, an investment bank analyst at Panmure Liberum, sharply criticised the UK’s approach, stating: “It makes no sense that we have shut down our domestic production only to rely ever more on imports. The Norwegians know they’ve got a daft neighbour who will buy everything it produces no matter the cost.”
Despite approximately 47.7 billion barrels of oil equivalent having been extracted from the UK Continental Shelf since 1970, the North Sea Transition Authority (NSTA) estimates remaining proven and probable reserves at 2.9 billion boe, alongside 6.2 billion boe in contingent (discovered but undeveloped) resources and 4.6 billion boe in prospective (undiscovered) resources. However, a spokesman for the UK Energy Department reiterated the government’s stance against new exploration, arguing it “would not take a penny off bills, cannot make us energy secure and will only accelerate the worsening climate crisis.”
The contrasting strategies of Norway, committed to maximising its hydrocarbon resources with cutting-edge technology, and the UK, prioritising a transition away from new fossil fuel extraction amidst declining domestic output, set the stage for fundamentally different energy futures and economic implications for both North Sea neighbours.
