Impact of Oil and Gas Exploitation in the North Sea on UK Household Energy Bills – Analysis

Abstract:

This rapid analysis examines how different government policies could reduce household energy bills . We find that the exploitation of all remaining North Sea Oil and Gas resources yields substantially smaller annual savings to households than switching to renewable energy – around 5-7 times lower.  The analysis finds estimated annual savings of ~£16 -£82 per household from North Sea fiscal revenues versus ~£105-£441 per household under renewables-led energy and electrification.  Using the median dual fuel household energy bill of £1 ,776 (Ofgem January 2026 Price Cap), North Sea fiscal transfers could reduce bills by ~1-5%, whereas the renewables-led savings range from ~6-25%.