Economic Report 2017

It is e sse nt ial t o cont inue t h e fle x ib le p ar t ne r sh ip b e t w e e n r e ne w ab le and ot h e r low e r - car b on e ne r gy sour ce s w it h in t h e e ne r gy m ix . R e ne w ab le sour ce s of e ne r gy w ill gr ow ov e r t h e com ing de cade s b ut fue ls such as nat ur al gas t h at can fill r e ne w ab le e ne r gy int e r m it t e ncy gap s w ill b e cr ucial in e nsur ing sup p ly r e m ains r e act iv e t o ch ange s in demand͘ Giǀen that energy demand routinely edžceeds the total aǀailaďle suƉƉly oĨ reneǁaďle energy, gas has a cr it ical r ole in p r ov iding e ne r gy st or age cap acit y . Eatural gas is an aĨĨordaďle, reliaďle, relatiǀely loǁͲcarďon Ĩuel that has helƉed the UK achieǀe signiĨicant G,G emission reductions in the Ɖoǁer generation sector ;ďy ϰϴ Ɖer cent on 1ϵϵ0 leǀels 3 Ϳ, disƉlacing highly carďonͲintensiǀe coal͘ &urthermore, uƉgrading to more eĨĨicient and modern gas condensing ďoilers Ĩor domestic heating, ǁhich release similar amounts oĨ O 2 as electric heat ƉumƉs, can helƉ consumers reduce emissions 4 . Nat ur al gas sh ould t h e r e for e b e r e cognise d as an ide al p ar t ne r for r e ne w ab le s in t h e UK e ne r gy sy st e m and can ďe a destination Ĩuel in the Ɖoǁer sector͖ in heaǀy industry ;Ɖarticularly oǀer the longer term ǁhen couƉled ǁith carďon caƉture and storage ; ^ͿͿ͖ and in heating and transƉort͘ ollaďoration ďetǁeen goǀernment and industry is Ŭey to estaďlishing an energy Ɖolicy that ďalances aĨĨordaďility, security oĨ suƉƉly and enǀironmental sust ainab ilit y . C C S is r e cognise d as one m e ans t o de car b onise p ow e r ge ne r at ion and e ne r gy - int e nsiv e indust r ie s v ia de p loy m e nt at gas- fir e d p ow e r st at ions or r e fining and ot h e r indust r ial p lant s. T h e UK C om m it t e e on C lim at e C h ange r e com m e nds t h at t h e de v e lop m e nt and de p loy m e nt of C C S t e ch nology is cr it ical t o m e e t ing t h e 205 0 low - car b on e conom y t ar ge t s. The ǁidesƉread deƉloyment oĨ ^ ǁill Ɖlay to the strength oĨ the UK oil and gas suƉƉly chain, ǁhich has all the skills ne e de d t o e x ce l in it s de p loy m e nt unde r t h e r igh t com m e r cial m ode l. H undr e ds of t h ousands of w or ke r s w it h transĨeraďle sŬills and Ŭnoǁledge ʹ Ĩor edžamƉle in geoscience, suďsea engineering and Ĩaďrication ʹ can ďuild on e x ist ing e x p e r t ise and infr ast r uct ur e t o e nab le safe and e ffe ct iv e t r ansp or t at ion and st or age of C O 2 in de p le t e d oil and gas reserǀoirs oĨĨshore͘ lectriĨication, carďon oĨĨset and carďon aďatement research and technologies also p r e se nt an im p or t ant op p or t unit y t o de p loy t h e skills of t h e w ide r oil and gas sup p ly ch ain.

1

2

3

4

5 6 7 8

9

10

11

3 I^, Updated Energy & Emissions Projections , Darch 2017 4 ^ee hƩƉ͗ͬͬcired͘netͬƉuďlicationsͬcired201ϱͬƉaƉersͬ IZ 201ϱͺ1ϯ27ͺĮnal͘ƉdĨ

1 3 1 3