NOT a single exploration well was drilled in North Sea waters in 2025 – the first year since oil and gas was discovered there in the 1960s, analysis finds.

Energy consultants Wood Mackenzie found oil and gas investment on the UK continental shelf, which stood at £4 billion this year, is set to plunge by more than 40 per cent in the next to £2.5bn, its lowest level for more than 50 years.

The consultancy’s North Sea research director, Gail Anderson, warned drilling was “at an all time low” with the sector set to shrink further, driven by a headline tax rate of 78 per cent, the Financial Times reported.

Industry bosses have campaigned for the Energy Profits Levy – a windfall tax of 35 per cent when oil prices break $76 (£56) a barrel or gas exceeds 59p a therm – to be scrapped, but the Labour government has so far held firm.

Shaun Spiers, executive director of climate think tank Green Alliance, said: “The government has sent a clear signal to the market that we want a greener energy system, so it’s no surprise money is moving away from fossil fuels.

“Meanwhile renewable energy companies have invested more than £50bn in the UK economy since Labour came to power.”

The government’s stated plan is to create a “prosperous and sustainable future for the North Sea – with record investment in to grow clean energy industries, while supporting the management of existing oil and gas fields.”

But Greenpeace UK’s Paul Morozzo said: “This isn’t a temporary blip.

“The North Sea’s days as an oil and gas basin are coming to an end. Investment is falling because of physical constraints and decreased profitability.

“The real risk now is chasing a declining industry instead of preparing for what comes next. 

“Doubling down on oil and gas won’t protect jobs, energy security or household bills.

“It’s time the government took action on the cost of living crisis, as well as to protect us all against the worst impacts of climate change. 

“The way to do that is by investing in the industries of the future, not clinging to one that’s in terminal decline.”