Oil and gas markets respond to US strikes on Iran: comment

“Oil and gas are commodities that are particularly vulnerable to price spikes as a result of conflicts and geopolitical events; this has always been the case and always will be. The UK is particularly exposed to increases in gas prices as we are reliant on the fuel for around 30% of our power generation and 85% of our home heating, which resulted in us being the worst hit by the gas crisis in western Europe, according to the International Monetary Fund.

"The gas crisis and now current events evidence that until we transition to renewables, heat pumps and EVs, we're tied to these international oil and gas markets - which means an energy independent future relies on moving to net zero."

Gavin Bridge, Professor of Economic Geography at Durham University and a Fellow of the Durham Energy Institute commented:

“Volatility in oil and gas markets is a problem for UK consumers. But trying to squeeze more from the North Sea won’t fix that problem. Oil and gas prices are set by international markets, and not by the balance of UK supply and demand. Most UK oil is exported and has been for years – there’s no requirement that companies producing oil in the North Sea supply the UK. To claim that new drilling is a remedy for price volatility and consumer bills is misleading.”