Business Outlook 2022
Figure 3: UK Energy Demand Outlooks Source: Offshore Energies UK, BEIS, CCC
‘CCC Net Zero Balanced Pathway’
‘BEIS Net Zero Delivery Pathway’
250
Petroleum Gas Electricity demand Solid fuel Bioenergy & waste (BEIS Category) Hydrogen CCS
200
150
100
UK Energy Consumption (mtoe)
50
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1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Source:OEUK,BEIS,CCC
committed to continuing to reduce emissions from oil and gas production. Future Scenario planning As new energy sources grow and the adoption of demand-side strategies take hold (for example heat pumps and hydrogen to replace gas for domestic heating, plus the scale-up of electric cars), oil and gas consumption should fall. There are varying estimates on the rate at which this might happen. Two key scenarios setting out potential net zero pathways for UK energy consumption are the UK Government Department for Business Energy and
Industrial Strategy (BEIS) Net Zero Strategy Delivery Pathway; and the Climate Change Committee (CCC) Balanced Pathway. These outline the opportunity for the offshore energy sector to remain at the heart of the expanding energy mix. Scenarios such as these are also helpful for the UK’s energy supply chain companies in terms of planning investment and resource strategies, to ensure that they can take advantage of emerging business opportunities. Oil and Gas The BEIS Delivery Pathway entails a 6% average annual decline in both oil and gas
BUSINESS OUTLOOK 2022
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