Economic Report 2017

3.1 T h e UK E ne r gy M ix L ast y e ar oil and gas p r ov ide d 7 6 p e r ce nt of t h e UK’ s t ot al p r im ar y e ne r gy . T h is e q uat e s t o 7 6 m illion t onne s of oil eƋuiǀalent ;mtoeͿ and 77 mtoe oĨ natural gas ;ϴϱ ďillion cuďic metresͿ͘ ^idžty Ɖer cent oĨ this net demand ǁas m e t b y r e sour ce s fr om t h e UKC S 1 , ǁith the rest satisĨied through imƉorts͘ tithout domestic Ɖroduction, the UK w ould h av e h ad t o im p or t a fur t h e r £ 17 b illion w or t h of oil and gas last y e ar t o m e e t de m and. A lt h ough w or ldw ide de m and for e ne r gy is for e cast t o incr e ase b y a t h ir d b y 2035 2 , the UK͛s total Ɖrimary energy de m and is like ly t o r e m ain at ar ound 200 m t oe ov e r t h at t im e . A n incr e asing p op ulat ion and e conom ic gr ow t h ar e edžƉected to ďe oĨĨset ďy energy eĨĨiciency gains͘ According to UK Goǀernment Ĩorecasts, oǀerall domestic Ɖrimary energy suƉƉly is edžƉected to Ĩall Ĩaster than demand, and so the UK ǁill ďecome more reliant on Ĩuel imƉorts that can b e m or e car b on int e nsiv e in t h e ir p r oduct ion and t r ansp or t at ion. F or e cast s sh ow t h at glob al oil and gas de m and is se t t o incr e ase b y m or e t h an 25 p e r ce nt b e t w e e n now and 2035 . The UK, ǁith loǁer consumƉtion oĨ coal and nuclear, is still edžƉected to meet tǁoͲthirds oĨ its energy demand w it h oil and gas in 2035 2 ͘ esƉite Ɖrogressiǀe decarďonisation in electricity generation oǀer the last Ĩeǁ years, hydrocarďons are less easy to reƉlace in the other maũor usages such as transƉort, heating and industrial use͘ tith uƉ to an estimated 20 ďillion ďarrels oĨ oil and gas eƋuiǀalent leĨt to recoǀer on the UK ^, domestic oĨĨshore oil and gas r e sour ce s w ill cont inue t o p lay a cr ucial r ole in sat isfy ing t h e UK’ s fut ur e e ne r gy de m and and w ill remain a Ŭey comƉonent oĨ energy suƉƉly Ĩor decades to come͘ The industryΖs D Z UK ;madžimising economic recoǀery Ĩrom the UK ^Ϳ strategy ǁill maintain this indigenous oil and gas Ɖroduction, in turn, minimising imƉort de p e nde ncie s and e nsur ing se cur it y of e ne r gy sup p ly .

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1 eƉartment Ĩor usiness, nergy & Industrial ^trategy ; I^Ϳ, Digest of the UK Energy Statistics 2017 2 BP Energy Outlook 2017

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