Call for Evidence: Managing the Future of UK Oil and Gas
Published: January 7, 2026
Written evidence submitted by Stephanie Loo, Ingrid Udd Sundvor, Anupama Sen, Nadia Schroeder, Cassandra Etter-Wenzel, Stuart Jenkins, and Myles Allen
Carbon Balance Initiative, in collaboration with Oxford Net Zero and the Smith School of Enterprise and the Environment, University of Oxford welcomes the opportunity to respond to the UK Government’s call for evidence on the role of oil and gas in the energy transition, the management of the UK’s North Sea energy basin and how the transition away from gas in home heating might be achieved.
In response to this call for evidence, we propose that the UK’s strategic approach to managing the oil and gas sector during the energy transition should be guided by a select list of clear, interlinked principles.
These principles are intended to support competitiveness in a declining basin while maintaining consistency with the UK’s legally binding net zero commitments and evolving international storage markets.
Read the full submission here
The Five Principles Are:
Net zero alignment as the foundation of oil and gas competitiveness. The long-term competitiveness of the UK’s oil and gas sector is contingent on its ability to operate within, rather than alongside, the net zero transition.
Policy stability and statutory certainty as prerequisites for investment. A stable and credible policy environment is critical for investor confidence in the oil and gas sector. Statutory obligations for defined stored-fraction pathways could create predictable market structures by enabling investors to model future demand for infrastructure development with greater confidence.
Strategic development of the UK’s geological assets in a European transition. Policy solutions should aim to ensure storage capacity is developed domestically while regulatory barriers to EU market access persist.
Strengthened industrial competitiveness while preventing carbon leakage and unmanaged industrial displacement. Implementing upstream measures and extending the CBAM to refined petrochemical products could help protect UK refinery competitiveness.
Fiscal stewardship to enable an orderly transition and durable public value. Reforms should prioritise fiscal instruments that create incentives for reinvestment in effective decommissioning, workforce retraining, and net-zero-aligned economic activity in the North Sea.