LNG

Offshore Energies UK, the leading trade body for the UK’s offshore oil and gas and energy industries with 400 members, has welcomed Rishi Sunak’s appointment as the nation’s next Prime Minister.

“Sunak must refocus attention on the crucial issues facing the nation, including helping people pay their winter energy bills and keeping the lights on in the face of Europe-wide gas shortages,” said the UK body about the new Conservative Party leader.

“In the longer term he must deal with the challenges of fuelling the future, including using the gas and oil remaining in the UK’s offshore waters to provide energy during the transition to low carbon,” added OEUK.

It pointed out that last year oil and gas accounted for 75 percent of the UK’s energy needs.

Last year the British consumed 78 billion cubic metres of gas, or the equivalent of 58 million tonnes of LNG, the output of four of the largest US LNG export plants.

Annual UK gas consumption amounted to 1,100 cubic metres per person. 

Oil and gas needs

The UK needed to import 11.05 million tonnes of LNG last year to help meet its needs, just behind Europe’s two largest LNG buyers, Spain with 13.85MT and France with 12.35MT.

Around 80 percent of UK households, or 24 million homes, rely on natural gas for heating and on average about 42 percent of all UK electricity is produced by burning gas.

As regards the nation’s oil needs, the UK consumed 55 million tonnes of oil and oil products in 2021, equivalent to 0.8 tonnes per person.

On UK roads, 32 million cars and trucks rely on gasoline and diesel for their fuel and require 22 million tonnes per annum of diesel and 10MT a year of gasoline.

“We wish Rishi Sunak the best. We are already in very challenging times and energy is at the top of the agenda. Global energy prices are rising, and UK consumers face surging bills at the coldest time of year,” said Deirdre Michie, OEUK’s Chief Executive.

“OEUK’s members are protecting the UK from many of the worst impacts of those shortages by producing energy for the whole nation,” she added.

“They will keep doing that in the tough times ahead. We work with politicians of all parties, now including Mr Sunak’s administration, and we look forward to meeting him and his team,” she added.

“When we do, we will be making a powerful case around the need for stability in the fiscal and regulatory regimes governing the UK’s offshore sector,” explained Michie.

“The UK needs to secure billions of pounds for offshore investments if it is to keep producing the gas, oil and offshore wind, plus other low-carbon energies, needed for future growth and productivity,” she declared.