UK exploration’s last dance: can allowances and a new licensing round boost activity?

The UK government has introduced investment allowances and launched a new oil & gas licensing round but does exploration have a future? Key takeaways from our analysis include: There are strong fundamentals for more UK exploration: performance has improved and the UK will continue to be a net oil & gas importer Existing plays could deliver 2 billion boe: the Central Graben and West of Shetland hold big potential however the Southern North Sea is the hotspot for 2023 But drilling activity is already at historic lows: IOCs have retreated leaving unfunded local exploers – more farm-ins and M&A are needed The UK needs to embrace its energy super basin status: Electrified and net zero hubs can offer low carbon tie-in opportunities