No new North Sea oil wells for first time since 1960s

For the first time since the UK Continental Shelf Act of 1964 enabled offshore drilling, no exploratory wells have been initiated in the British North Sea this year, with none planned for the remaining months.

A Westwood Global Energy survey of operators confirms zero exploration wells drilled in 2025, contrasting sharply with Norway's 30 wells so far and up to nine more expected by year-end, despite similar geology.

Labour's policies drive this halt: a windfall tax hiked to 78% on profits and Energy Secretary Ed Miliband's ban on new exploratory licenses. Drilling persists in pre-ban licensed areas, but industry cites fiscal raids and policy uncertainty deterring investment.

Alyson Harding of Westwood stated:

“Our dataset shows that in 2025 to date, oil and gas companies in the UK have not initiated the drilling of any offshore exploration wells. This is the first such year since 1964 when the first offshore exploration well was spudded. Investor sentiment ... is at an all-time low, due to the current tax regime and uncertainties around government policies and regulation.”

Constant new field development is critical as UK reservoirs deplete quickly. Last year, the UK imported 43 million tonnes of crude oil and 31 million tonnes of refined fuels, producing only 29 billion cubic metres of its 72 bcm gas consumption. Reserves remain up to 24 billion barrels across 283 fields, but 180 cease by 2030.

Critics blame government hostility. Brindex chairman Robin Allan said: “The Government has taken an exceptionally hostile approach to our sector, at the expense of UK workers, communities, tax take and energy security.” Shadow energy secretary Claire Coutinho added: “The blame for this collapse lays squarely at Ed Miliband’s door.”

Offshore Energies UK CEO David Whitehouse urged Budget reforms to retain investment. A Department for Energy Security spokesman countered: “Oil and gas production will be with us for decades to come, and we are working with industry to manage our existing fields for the entirety of their lifespan.” Miliband plans a revised strategy pre-Budget; Chancellor Reeves eyes early levy end, but Westwood warns decline accelerates.