Economic Report 2020
What Does Industry Add: >£150 billion of capital has been invested in the basin over the last 20 years Around 2/3 of this committed between 2010-19, driving increased production 2/3 The UK supply chain provides services worth around £28bn worldwide, 60% of which is related to UK activities The energy sector provides 2.5% of UK’s GVA – oil and gas is a key contributor In 2019 the industry supported up to 270,000 jobs, however the slowdown in investment has led to a reduction in 2020
Industry Contribution to Net Zero:
This year UK emissions have fallen by an estimated 10.2% ( 5.5% globally) – mainly due to the effects of lockdown restrictions
Industry has committed to halve production emissions by 2030 on the path to net-zero emissions by 2050
Even in the most rapid transition scenario, oil
and gas will still provide 46% of global energy needs in 2040
Achieving our CCUS goals could require around £2–2.5 billion by 2030 to develop transport and storage infrastructure
The Climate Change Committee estimates annual net-zero investments may need to grow to 2% of GDP - up to £50bn/year until 2050 – providing new diversified growth opportunities
Estimated $400bn global investment in hydrogen required between now and 2035
Hydrogen will become increasingly integrated, replacing around 50TWh of UK gas consumption by 2030
Securing a North Sea Transition Deal will help unlock these opportunities and advance net zero
Up to 175 mtCO 2 will need to be captured and stored in the UK each year by 2050 – equal to half of all domestic CO 2 emissions in 2019
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