Business Outlook 2022

Figure 1: UK Energy Demand Source: BEIS

Petroleum

Natural gas

250

Coal

Nuclear

Bioenergy & waste

Wind, solar and hydro

Net imports

200

150

100

50

UK Energy Consumption (Mtoe)

0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 Source: BEIS

2021

UK energy consumption in 2021. Gas continues to be the UK’s largest energy source, supplying 43% of consumption last year, followed by oil, which supplied more than 32%. Despite reductions in overall consumption, the relative importance of oil and gas within the energy mix has remained consistent since 2000, with an annual average of 33% for oil and 39% for gas. Renewable energy capacity has risen almost six-fold since 2010 but from a low base. This means that renewables (wind, solar and hydro) still supply a relatively modest proportion of total UK energy

consumption (4%). While much of the public debate focuses on electricity, it only accounts for around 22% of energy use, with domestic use (mainly heating) and transport the largest energy consumption sources (29% and 33%, respectively). Transport is almost entirely fuelled by oil products (94%), and more than 80% of UK homes rely on gas for heating.

BUSINESS OUTLOOK 2022

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