Business Outlook 2019

BUSINESS OUTLOOK 2019

Maximising economic recovery from the UK’s indigenous oil and gas resources can be achieved alongside the reduction in carbon emissions, with production from the UKCS remaining a critical component of the country’s energy mix for at least the medium term. In 2018, oil and gas accounted for 75 per cent of the UK's primary energy demand and the UK Government forecasts that it will still be required to meet around two-thirds of primary energy needs in 2035. 4 UKCS output currently meets 59 per cent of the country's primary oil and gas demand (see section 4.1), and even in the most ambitious scenarios UK production will not meet future demand levels. From an energy security and economic perspective, it is crucial that indigenous sources continue to meet as much domestic demand as possible.

Figure 6: UK Oil and Gas Production and Demand Outlook

300

UK Oil & Gas Demand Foreacst UKCS Production Vision 2035 Production

250

200

150

100

Oil & Gas Production and Demand (Million Tonnes of Oil Equivalent)

50

0

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

Source, BEIS, OGA, Oil & Gas UK

4 www.gov.uk/government/uploads/system/uploads/attachment_data/file/666259/Annex-e-primary-energy-demand.xls

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