Business
Wood Mackenzie Report on UK Oil
A new Wood Mackenzie report, commissioned by Ithaca Energy and endorsed by OEUK, highlights the critical role of UK oil production within Europe's integrated energy system, noting that 65% of UK crude volumes ultimately return to serve the UK market. The report emphasizes Europe's significant energy dependency, importing 80% of its crude oil, with the North Sea accounting for 90% of indigenous European supply. While the UK exports over 80% of its production, 89% of this crude is refined in Europe, underscoring an essential circular relationship. The analysis also indicates that even under Net Zero scenarios, the EU, Norway, and UK will remain import-dependent through 2050, and the UK's diminishing refining capacity increases its reliance on refined oil product imports. Disclaimer*
About this update from Ithaca Energy Plc
[{"type":"text","content":"\n\n20 November 2025\n \nIthaca Energy plc\n(\"Ithaca Energy\" or the \"Group\")\n \nNew Wood Mackenzie Report shows Critical Role of UK Oil for Europe's Integrated Energy System\n65% of UK crude production volumes ultimately return to serve the UK market\n \nWood Mackenzie, in partnership with Ithaca Energy and Offshore Energies UK (\"OEUK\"), is pleased to announce the publication of a report on UK Oil Flow Analysis and the UK's role within the European energy system, focusing on UK crude oil production and the end markets for crude oil and refined oil products. The report was commissioned by Ithaca Energy and endorsed by OEUK, whereby Wood Mackenzie conducted independent analysis of the trade of UK crude oil production.\n \nExecutive summary:\n· The UK is the #2 oil producer in Europe, a market with a massive oil supply deficit - The UK is critical to Europe's integrated energy system exporting crude oil and importing refined oil products largely within the Northwest European market\n· Europe faces significant energy dependency, importing 80% of its crude oil supply - UK is a linchpin in the European oil supply system; the North Sea accounts for 90% of European indigenous supply\n· The UK's strategic value lies not in self-sufficiency, but in its deep integration with European refining infrastructure - The UK exports over 80% of it production, 89% of UK crude production gets refined in Europe\n· Essential circular relationship between the UK and Europe - Approximately 65% of UK crude production volumes ultimately return to serve the UK market\n· Even under Net Zero scenario, the EU, Norway and UK remain import dependent through to 2050\n· As the UK's refining capacity diminishes through refinery closures the UK is becoming increasingly reliant on refined oil product imports\n \nThe report can be read in whole here on Wood Mackenzie's website: https://www.woodmac.com/news/opinion/uk-critical-role-in-europe-integrated-oil-system\n \nDavid Whitehouse, CEO, Offshore Energies UK commented: \"The critical importance of the UK's homegrown oil to its own economic and national security is understood, but this timely and in...