Jenny Stanning, OGUK’s external relations director, said: “This is a commercial decision between partners but doesn’t change the facts that the UK will continue to need new oil and gas projects if we are to protect security of supply, avoid increasing reliance on imports and support jobs.
“However, we know that to deliver the transition to a lower carbon future, investor confidence remains essential. The government has made clear that gas and oil have a critical role to play in the nation’s future energy supply and we will continue to work with governments, industry and politicians of all parties to make this case.”
How reliant is the UK on oil and gas?
OGUK’s Economic Report (September 2021) showed that oil and gas provided 73% of the UK’s total energy in 2020 so these fuels are still central to our lifestyles and our economy.
For Scotland the levels are even higher – in 2020 it relied on oil and gas for 78% of its total energy and 91% of its heating.
OGUK’s report supports the government’s view that, between now and 2050, half the UK’s energy will still need to come from oil and gas, even as consumption declines during the energy transition.
OIL FACTS: (from DUKES)
- In 2019 the UK consumed 59 million tonnes of oil and oil products such as petrol, diesel and aviation fuel
- This amounts to just under a tonne of oil per UK citizen.
- Transport is the primary use. About 32 million cars, vans and lorries rely on petrol or diesel
- The UKCS produced 53 million tonnes of oil
GAS FACTS: (from DUKES)
- In 2020 the UK consumed 74 billion cubic metres of gas.
- This works out at 1,100 cubic metres of gas for each of the UK’s 65m citizens.
- About 23 million homes rely on gas for heating.
- There are 28m UK households so 83% depend on gas.
- The UK has 35 gas fired power stations providing about 41% of our electricity.
- About half the gas consumed in the UK came from UK sources – the rest was imported
A full industry response can be found here.