Recent rises in global fuel prices have made the UK's onshore resources more viable, with industry leaders arguing that they could play a vital part in meeting future demand, it has been reported.

While the UK is believed to have just 0.3 per cent of the world's proven oil reserves, with much of this under the North Sea, ministers are looking into the feasibility of giving the green light to plans to drill onshore.

According to Egdon resources, which recently obtained one of 97 new licences for further onshore and offshore drilling in UK territories, obtaining such resources would cost around a tenth of obtaining those in the North Sea, while energy minister Malcolm Wicks has stated that he is keeping an open mind as the government looks to meet soaring demand for energy and cope with soaring wholesale oil prices.

Another company interested in onshore drilling, Northern Petroleum, told the BBC: "It is our opinion that 100 million barrels of oil or even more is recoverable from the UK South of England alone, possibly more

"This would be advantageous to the country, not just for the creation of jobs in the haulage and service maintenance sector for example, but also... in adding a large amount to the chancellor's purse and reducing the UK's energy deficit."

It is expected, however, that the UK will become a net importer of oil by 2010 as North Sea production declines.

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