Ahead of today's Autumn Statement, Offshore Energies UK (OEUK) warns that urgent reform of the Energy Profits Levy is now critical to protect jobs, investment, and national security.

Statistical analysis by OEUK shows reform of the 78% Energy Profits Levy (EPL) now would yield an extra £15.7 billion in taxes within ten years

Reforming the levy in 2026, rather than delaying until its planned expiry in 2030, will increase tax receipts from £32.9 billion to £48.6 billion because of extra payroll taxes from the jobs sustained in industry, extra corporation and other taxes, plus tax contributions from the associated energy supply chain.

Why it matters:

Domestic production has a lower carbon footprint than imported LNG.
Policy decisions - not geology - are driving accelerated decline in the North Sea.
Without decisive action, the UK will lose jobs, investment, and energy security.OEUK the North Sea energy trade body, which represents more than 400 oil, gas, offshore wind, carbon capture and hydrogen producers plus their energy supply chain, has shown the proposed reform could unlock £50 billion of UK oil and gas projects, sustain tens of thousands of jobs, and over time deliver higher tax receipts, supporting the UK’s energy security and net zero ambitions. ​

The analysis demonstrates that even within the next five years, the reformed tax scheme would pay for itself.

The proposal has been informed by data gathered by OEUK which shows 111 projects representing 3.25 billion barrels of oil and gas reserves are economically viable in the right conditions. This would mean the UK could support at least half of its oil and gas needs to 2050 from domestic production which pays UK taxes, supports UK jobs and sustains a supply chain anchored in the UK.

These projects could add £75 billion of value to the UK economy by 2035. ​

OEUK warns that delaying reform until 2030 will accelerate the decline of North Sea production, with output forecast to fall by 40% by 2030 unless action is taken.

This would result in the loss of 1,000 jobs per month, increased reliance on imports, and a shrinking national tax base from domestic oil and gas production.

OEUK also points out that the Office for Budget Responsibility’s (OBR) forecasts for oil and gas tax revenues are overstated due to lower commodity prices, with expected production revenue falling from £11.5 billion to £6.7 billion between 2026/27 and 2029/30. ​

Reforming the EPL would also secure the offshore energy workforce and supply chain, and the longevity of critical infrastructure and supporting industrial hubs across the country, including Aberdeen, Teesside, Grangemouth, and East Anglia. ​

1000 jobs lost a month is not acceptable. Reforming the Energy Profits Levy is the single most critical step to unlock investment, protect jobs, and secure our energy future. The Chancellor must act.

We recognise that these are difficult times; but the path forward must be to support growth, unlock £50 billion of investment, protect 160,000 jobs, and anchor the supply chain companies needed for future offshore wind, carbon capture and storage and hydrogen projects. We need a budget that backs UK industry and our workforce

Jobs: Offshore energy supports 200,000 UK jobs, including 90,000 in Scotland.
Economic impact: The sector contributes £25bn annually and has paid £450bn in taxes since 1970.
Energy security: The UK imports 40% of its energy. Domestic production reduces reliance on high-emission imports.
Future demand: Even in a net-zero scenario, the UK will need 10–15 billion barrels of oil and gas equivalent by 2050. The UK is currently on track to produce less than 4 billion barrels.
Licensing: There are currently over 240 active oil and gas fields in the North Sea. By 2030 around 160 of those may cease production due to natural decline, bringing the number down to just 80. EPL uncertainty threatens £200bn in private capital for UK energy projects.