Economic Report 2022 - OEUK

Figure 14 Offshore energy expenditure forecast

Oil and Gas Capital Investment

Oil and Gas Operational Expenditure

30

Oil and Gas Decommissioning Expenditure

Offshore Wind Capital Investment

Offshore Wind Operating Expenditure

CCS Transport and Storage Expenditure

Hydrogen Production Expenditure

25

20

15

10

Offshore Energy Investment (£ Billion)

5

0

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Source: OEUK, NSTA, Rystad

Realising the UK’s remaining oil and gas potential As well as being the UK’s largest source of energy consumption (three-quarters of total use), oil and gas are also the country’s largest source of primary domestic fuel production, accounting for 71% of the total last year. Although domestic production has risen this year, OEUK expects output to decline in the medium to longer term, the rate of which will be defined by investment levels. As the basin matures and the

development of low carbon and renewable fuels increases, it is important that the UK continues to support oil and gas investment for security of supply and other benefits such as employment and taxation. The North Sea Transition Authority (NSTA) estimates that (as of end-2020) there were almost 15bn boe remaining on the UKCS, spanning reserves in producing fields (4.4bn boe), known investment opportunities (6.8bn boe) and mapped exploration plays (3.7bn boe).¹⁸ But it is important to

ECONOMI C REPORT 2022

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