After years of high energy bills, it is understandable that some argue the answer to the UK’s energy security problem is to produce more domestic oil and gas. The argument sounds intuitive. But it does not reflect how energy markets actually work.
Why more domestic oil and gas would not meaningfully insulate UK households from global prices
Oil and gas are globally traded commodities. The issue is not whether fuel is physically extracted in the UK. The issue is how it is priced.
UK-produced oil and gas is sold by private companies at market prices. It is not automatically reserved for UK households at a lower rate. So even if the UK increased domestic production, households would still be exposed to international fossil fuel prices.
That is why energy security cannot rely on producing more fossil fuels alone. It requires reducing the role that volatile fossil fuel prices, especially gas prices, play in UK bills. More clean power, more storage and stronger grid infrastructure help do that by reducing the amount of gas the system needs.
This is a consistent finding across independent analysis. Increasing domestic fossil fuel production does not insulate UK households from global price volatility.
The gas crisis of 2022 demonstrated this clearly. The electricity price cap rose by more than £1,300 in a single year. The UK Government spent over £44 billion supporting energy bills between October 2022 and March 2024. That happened regardless of domestic production levels, because the UK’s energy bills are tied to international gas markets.
The UK does not only use gas for heating. It also uses gas to generate electricity. When gas prices rise, gas-fired power stations become more expensive to run. Because they are often needed to meet demand, they can set the wholesale electricity price. That means higher gas prices can feed through into electricity bills, even when much of the power on the grid comes from lower-cost sources such as renewables or nuclear.
Recent market analysis suggests gas was still setting the UK electricity price for around two-thirds of the time in March 2026. That exposure is the problem. And it cannot be solved by drilling more wells.
What energy security actually requires
True energy security means building a system that is resilient over time. That requires reducing exposure to volatile global fossil fuel prices, strengthening domestic infrastructure and supporting communities through the transition.
The UK Government’s Clean Power 2030 Action Plan is clear on this point. It says the UK’s dependence on fossil fuels exposed households to unstable energy prices, and that producing clean energy at home is the route to protecting families and businesses from volatile global gas markets.
Recent global instability has reinforced this. The IEA notes that in 2025 around 20 million barrels per day of crude oil and oil products passed through the Strait of Hormuz, representing around 25% of the world’s seaborne oil trade. That single figure illustrates how exposed global energy markets remain to regional disruption. When supply routes are threatened, prices move. When prices move, bills follow.
Oil does not usually set UK electricity prices in the same way as gas. But it still matters for energy security. Oil prices affect transport, supply chains, food distribution and wider inflation. They are also exposed to the same international markets and supply routes. So the lesson is broader than gas alone: the UK is stronger when it reduces its exposure to volatile fossil fuel markets.
This is an energy resilience argument, not a political one.
The role of solar and storage
Solar is not the whole answer. But alongside battery storage, grid investment and other clean technologies, it is a practical and scalable part of a more resilient, home-grown energy system.
Solar costs have fallen by around 50% since 2016, according to the Government’s Solar Roadmap. The Roadmap puts the levelised cost of ground-mounted solar at around £47 per MWh. In the latest clean power auction, new solar secured contracts at £65.23 per MWh, less than half the Government’s stated £147 per MWh cost of building and operating new gas power stations. That gap matters. It shows why clean, home-grown power is central to energy security as well as decarbonisation.
More renewables on the grid means gas sets the price less often. When gas sets the price less often, wholesale electricity costs fall.
UCL research found that UK wind generation delivered a net benefit of £104.3 billion to consumers between 2010 and 2023, including £14.2 billion from lower electricity prices and £133.3 billion from reduced natural gas prices. The economic case for renewables is not theoretical. It is already being measured.
Why bills do not fall overnight
Honesty matters here. Wholesale energy costs make up around 40% of a typical household energy bill, according to Ofgem. The rest is network costs, levies, standing charges and supplier costs. Changes in wholesale prices do not feed through to customers immediately.
So a single new solar park will not cut anyone’s bill next month. But the cumulative effect of more solar, more storage and a smarter grid is already visible in the data. The more clean power the UK builds, the less exposed households and businesses are to the next global fossil fuel price shock.
Our position
At Elements Green, we are concerned by the human and economic impact of global instability, and by the pressure it places on energy markets. Our response is to focus on what we can contribute: responsible delivery of the clean energy infrastructure the UK needs.
Global instability reinforces the need for resilient, home-grown energy systems. Our role is to help deliver that infrastructure responsibly, with communities, biodiversity and long-term trust at the centre.
