Highlights

  • Approximately 65% of UK crude production ultimately serves the domestic market.
  • North Sea contributes 90% of Europe’s indigenous crude supply, underlining energy reliance.
  • UK refining capacity decline increases dependence on imported refined oil products.

Ithaca Energy (LSE:ITH) provides a detailed analysis of UK crude oil production and its flow within European energy markets. The study examines both crude oil and refined product trade, illustrating the UK’s role as the second-largest oil producer in Europe.

The analysis highlights that while the UK exports over 80% of its crude oil production, around 65% of these volumes eventually return to the domestic market, indicating a strong integration with European refining infrastructure.

European Energy Dependence

Europe relies heavily on imported crude oil, meeting approximately 80% of its demand through imports. The North Sea, representing nearly 90% of Europe’s indigenous supply, positions the UK as a central contributor to regional energy security. Even under projected Net Zero scenarios, the EU, Norway, and the UK remain import-dependent for crude oil through 2050.

As domestic refining capacity declines due to ongoing refinery closures, the UK increasingly depends on imports of refined oil products to meet local demand, highlighting the interdependency between UK production and European refining systems.

Strategic Flow of UK Crude

The report emphasizes the UK’s dual role in the European energy market: supplying crude oil externally while maintaining significant volumes for domestic consumption. Exports of UK crude primarily go to Europe, where they are refined before a portion returns to the UK market. This cyclical relationship underlines the UK’s importance not only for national supply but also for the broader European energy system.

Share Price Snapshot

ITH was trading 1.75% higher at GBX 232.00 per share as of 20 November 2025.