Economic Report 2019

3.1 Delivering UK Energy Security The UK energy mix has evolved significantly over time, as outlined in Figure 1 below. The overall proportion of UK primary energy demand met by oil and gas has increased since the early 1990s, from around 60 per cent to 75 per cent in 2018. As the use of coal has decreased over time, gas has formed an increasingly important role as the main swing producer within the UK system to help meet peaks in electricity demand.

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Figure 1: UK Primary Energy Demand

300

Oil

Natural Gas

3

Coal

Renewables & Waste Electricity Net Imports

Nuclear

250

4

200

150

5

100

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Primary Energy Demand (mtoe)

50

7

0

1990

1995

2000

2005

2010

2015

Source: BEIS, DUKES

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In 2018, the UK produced enough energy from a range of domestic sources to meet around 65 per cent of its primary energy demand, with the remaining 35 per cent imported from other countries. Domestic oil and gas production was equal to 45 per cent of primary energy needs last year. This was sufficient to meet 51 per cent of the country's gas demand and 67 per cent of oil demand (although significant quantities are also exported). Of the UK’s gas imports, the majority (72 per cent) were from Norway, 13 per cent via the Netherlands and Belgium and 15 per cent from liquefied natural gas (LNG) shipments, the bulk of which originated from Qatar. In terms of oil imports in 2018, 39 per cent were from Norway, 29 per cent from OPEC countries and 17 per cent from the US. The remaining imports were from a range of other nations including Canada, Azerbaijan, Egypt and Russia.

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