The DJ, who plays the Gatecrasher residency at Ibiza's Privilege on August 10, 17, 24 and 31, told Digital Spy that the "melodic" album features the "cutting-edge of underground music".
Oakenfold said: "A lot of the trance music is very fluffy and cheesy and this represents the darker and edgier side of a great genre.
"The cheesier side of trance has been there for six, seven years. I lost interest because I didn't like that sound - everything sounded the same.
"I've come across all these great new tunes that I really like and felt this is a perfect time to do a compilation, because I hadn't done one in a while."
Oakenfold said of the idea behind the Sex Pistols-inspired title: "It's not cheesy, it's not commercial, you're not going to hear it on radio, it's full of attitude."
Listen to an 18-minute teaser of Paul Oakenfold's new album below:
Asked about the state of dance music today, Oakenfold said: "I think for me it's finally getting back to how good it was back in the day. It went through a time when the tunes were just crap. I think there's a lot of good tunes coming out."
Oakenfold also revealed details of a "more mainstream artist album" for release in 2012, which will be "all songs" and feature Cee-Lo Green, Eve and former collaborator Ryan Tedder.
"I've been in this business a while and why I got into it is that I love songs," he said. "My father was a musician and a big collector of music and I listened to a lot of great songs and great singers. I thought, 'That's what I've got to do'.
"I've got to make an album that isn't underground. One that's just great, great songs. And find great singers - some of them you'll know and some of them you won't - and offer my edgy beats to the table."
> Amy Winehouse was a special singer, says Paul Oakenfold
Listen to Paul Oakenfold featuring Ryan Tedder's 'Not Over' from his 2006 album A Lively Mind below: