Economic Report 2019

ECONOMIC REPORT 2019 Economic Report 2019 - Facts and Figures

3. The UK Oil and Gas Industry as a Key Economic Asset

In Summary A s a major industrial sector, the UK oil and gas industry brings widespread benefits across the length and breadth of the UK. The industry’s contribution to the economy is made up of a combination of factors which reflect the total value added by the sector, with significant positive contributions from both exploration and production (E&P) operations and the associated supply chain activity. Oil and gas met three-quarters of the UK’s primary energy needs in 2018. The industry is a critical component of the UK’s energy security, providing vital insurance in an ever-changing and uncertain geopolitical environment. Last year, production from the UKCS was enough to meet 45 per cent of primary energy demand and 59 per cent of oil and gas demand. In addition, the industry contributes considerable sums to the UK Exchequer from production, corporation and payroll taxes, and contributes more widely to the economy by adding to GDP, gross value added (GVA) and balance of trade. In terms of employment, estimates suggest that in 2019 the industry supports just under 270,000 jobs across the country — the majority of which are in the UK’s world-leading supply chain. The UK oil and gas industry is more competitive than it has been for many years and continues to evolve in response to the challenges it faces. It remains well placed to continue to make a significant contribution in the decades to come, supporting economic growth whilst helping to advance the UK towards a net- zero future through its technology, skills and capabilities. UKCS production is equal to 45% of UK energy needs UK industry must remain internationally competitive to unlock new opportunities Crucial to maintaining energy security UKCS production is equal to 45% f UK e ergy needs Oil and gas production contribu ed over £24 billion to UK GDP i 2018

UKCS production is equal to 45% of UK energy needs

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Crucial to maintaining energy security

UK industry must remain internationally competitive to unlock new opportunities Oil and gas production contributed over £24 billion to UK GDP in 2018

The UK oil and gas industry supports the ambition to achieve a net-zero carbon economy UKCS production continues to grow, now meeti g 59% of oil and gas demand The oil and gas industry supports around 270,000 jobs across the UK 59%

Crucial to maintaining energy security

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UKCS production

UK industry must

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