London, 3 September 2025 – Tory leader Kemi Badenoch’s promise to “maximise” North Sea oil and gas extraction has reignited debate over the future of the UK’s energy system. At a conference in Aberdeen, she said oil and gas reserves would be the “cornerstone of Britain’s future” if her party won power, pledging to scrap the current ban on new licences.
But energy experts warn that even if exploration is expanded, it will do little to cut household bills – and could leave the UK more exposed to global price shocks.
Reserves in Decline
The reality is that UK reserves are in long-term decline. Production from the continental shelf has been falling for decades, and analysts say any new discoveries would only make a marginal contribution to supply. Shadow energy secretary Claire Coutinho has suggested maximising extraction could raise £12 billion in tax revenues over a parliament, but even she concedes it would not lower bills for households.
International markets ultimately determine the cost of gas and oil. Whether extracted domestically or imported, the UK pays the global price. This means drilling more in the North Sea may provide some fiscal benefits but won’t deliver cheaper gas for families facing another winter of high bills.
Why Households Won’t See Relief
According to Cornwall Insight, the typical dual-fuel household bill will rise to £1,755 from October – up £35 from today. The increase is not driven by a lack of North Sea oil or gas, but by structural costs such as grid balancing and the expansion of the Warm Home Discount scheme.
Standing charges are also climbing, with electricity up 4% and gas up 14% compared with summer levels. For households already carrying record levels of energy debt, small changes in unit rates and standing charges have far more impact than potential drilling projects that may take years to deliver.
The Case for Green Energy
Critics argue that investing in renewables offers a more sustainable solution. Households that switch to green energy tariffs benefit from power that is less exposed to volatile global fossil fuel markets and, once infrastructure is in place, can access more predictable rates.
Reports also suggest that choosing the best energy suppliers for your payment method and usage patterns can lead to meaningful savings, particularly for families on standard variable tariffs.
How Households Can Cut Costs
While debates about oil and gas extraction play out in Westminster, households need practical steps now to control costs. Consumer groups recommend three actions:
- Carry out an energy price comparison – The Ofgem cap only applies to default variable tariffs. Many fixed deals are already under the cap, and switching could save households hundreds of pounds this winter.
- Review suppliers – Comparing the best energy suppliers for gas and electricity ensures families get competitive rates tailored to their usage.
- Switch with confidence – Using tools like Free Price Compare allows households to explore dual fuel tariffs and fixed deals in minutes.
A Winter of Pressure
Campaigners warn that more than 12 million households remain in fuel poverty. The End Fuel Poverty Coalition says the October rise will leave families paying around £700 more than they did in winter 2020–21. Without long-term reform, these pressures will persist regardless of North Sea policy.
Simon Francis, coordinator of the coalition, commented:
“Drilling in the North Sea may make headlines, but it will not bring down bills. Households need action today – that means competitive tariffs, targeted support, and investment in renewables that actually reduce costs.”
Looking Ahead
While political debate focuses on fossil fuel policy, analysts stress that the best near-term solution for households is to compare energy prices and switch to better deals. Green energy, efficiency measures, and competitive suppliers offer the real path to reducing bills – not promises of new oil and gas extraction.