Economic Report 2019

Roadmap 2035 signals an exciting future for the UK oil and gas industry. It builds on the capabilities that the sector has been developing for over 50 years. Industry now needs to cement its place in the UK’s energy future, with support from government, regulators, investors and our wider society. As has been outlined, industry is already making good progress across a number of areas. The basin is now more attractive to new investors, production performance remains strong, drilling activity is increasing and new technologies are making a positive impact. It is important that industry retains its focus on performance as it helps the UK transition to a net-zero economy. The following section outlines how industry is evolving within this context, and how it will be vital to helping the UK reach net-zero. 5.2 Net-Zero 2050 — The Crucial Role of the Oil and Gas Industry Energy systems are evolving rapidly—both in the UK and globally. As outlined in Roadmap 2035 , to ensure that the full potential of the UK oil and gas industry is realised, companies will continue to address the challenges presented by ongoing energy transitions. It is also key that industry’s actions, progress and potential are communicated effectively to society and investors to demonstrate performance and intent. Meeting Global Energy Needs Global energy demand has increased by two-thirds since 1995 and, although there are a range of scenarios for how demand could evolve, most show continued growth in the decades to come. Some of this increase will be offset by improving energy efficiency, but it is clear that any growth needs to be met safely, sustainably, securely and affordably. To find out more about industry’s Roadmap 2035 , go to www.energyvision2035.com.

1

2

3

4

5

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Figure 23: Global Energy Demand Growth

7

20,000

18,000

8

16,000

14,000

9

12,000

Global Energy Demand BP Evolving Transition Scenario BP Rapid Transition Scenario IEA Sustainable Development Scenario

10,000

8,000

10

Energy Demand (mtoe)

6,000

4,000

11

2,000

0

1995 2000 2005 2010 2015 2017 2020 2025 2030 2035 2040

Source: IEA, BP

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