Business Outlook 2019
BUSINESS OUTLOOK 2019
Maximising economic recovery from the UK’s indigenous oil and gas resources can be achieved alongside the reduction in carbon emissions, with production from the UKCS remaining a critical component of the country’s energy mix for at least the medium term. In 2018, oil and gas accounted for 75 per cent of the UK's primary energy demand and the UK Government forecasts that it will still be required to meet around two-thirds of primary energy needs in 2035. 4 UKCS output currently meets 59 per cent of the country's primary oil and gas demand (see section 4.1), and even in the most ambitious scenarios UK production will not meet future demand levels. From an energy security and economic perspective, it is crucial that indigenous sources continue to meet as much domestic demand as possible.
Figure 6: UK Oil and Gas Production and Demand Outlook
300
UK Oil & Gas Demand Foreacst UKCS Production Vision 2035 Production
250
200
150
100
Oil & Gas Production and Demand (Million Tonnes of Oil Equivalent)
50
0
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
Source, BEIS, OGA, Oil & Gas UK
4 www.gov.uk/government/uploads/system/uploads/attachment_data/file/666259/Annex-e-primary-energy-demand.xls
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