Providing for the UK’s Energy Needs

Security of Energy Supply

Oil and gas from the UK Continental Shelf have provided security of energy supply for nearly three decades.

Figure 15: UK Oil Production vs. Consumption 1970-2020

The UK has been self-sufficient in oil for the last 25 years and is expected to remain so for the next 4 or 5 years, if current new developments proceed as planned. If the UKCS remains competitive in global terms and attractive for new, international investment, these new reserves should continue to be developed and, as a result, the UK would be able to meet around 65% of forecast oil demand in 2020 from indigenous production. However, if this investment does not materialise, only about 20% of such demand will be satisfied by domestic production.

Figure 16: UK Gas Production vs. Consumption 1970-2020

With rising demand for gas expected over the next 15 years and having become a net gas importer in 2004 after a decade of self-sufficiency, future UKCS gas production will be a major factor for security of energy supplies. Current production plans are only expected to deliver ~10% of UK gas demand in 2020, but, with sustained investment, UKCS production could still meet around 25% of such demand.