Prime Minister Boris Johnson has suggested Britain could ramp up domestic gas production as he admitted the West needs short-term substitutes for Russian supplies to reduce costs on UK families.
The Daily Mail says Mr Johnson will set out a new energy supply strategy in the coming days as he faces pressures to end reliance on Vladimir Putin's regime.
It is understood this is likely to include a new round of North Sea exploration licences this year.
Addressing a Downing Street press conference yesterday, the Prime Minister insisted the UK would continue its long-term goal to switch to renewable green power like wind and solar.
But he said short-term policy had to "reflect the reality that there is a crunch on at the moment".
The price of gas went through the roof to record levels yesterday. UK wholesale gas hit 800p per therm - up from 39p a year ago.
Tory MPs are urging Mr Johnson to dramatically ramp up the UK's domestic gas production and to re-examine his net zero by 2050 plan after the Ukraine crisis rocked energy markets.
Conservative backbenchers believe the Russian invasion has materially changed the energy picture and ministers should be doing "everything we can to produce as much energy domestically as possible".
Meanwhile, the BBC reports that Russia has said it may close its main gas pipeline to Germany if the West goes ahead with a ban on Russian oil.
Deputy Prime Minister Alexander Novak said a "rejection of Russian oil would lead to catastrophic consequences for the global market", causing prices to rocket to $300 a barrel.
The US has been exploring a potential ban with allies as a way of punishing Russia for its invasion of Ukraine.
But Germany and the Netherlands rejected the plan on Monday.
The EU gets about 40% of its gas and 30% of its oil from Russia, and has no easy substitutes if supplies are disrupted.
Earlier this morning, the April contract for Brent crude was at $126 a barrel, after topping the $130 mark on Monday.