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The UK Oil and Gas Industry's Contribution to the UK and its Economy UK Energy Production The offshore oil and gas production industry continues to make a major impact on Britain's national and local economies. In 2003 the industry produced 4.0 million boepd (barrels of oil equivalent per day) of oil and gas, only slightly below the 2002 figure (4.2 million boepd). Oil production, including liquids, averaged at 2.15 million barrels per day, and gas production was 102 billion standard m3 in 2003. Figure A: UK Oil & Gas Production 1970-2003 Oil production, including liquids, peaked at 2.8 million boepd in 1999 whereas gas production peaked at 108 billion standard m3 in 2000. However, on a worldwide scale, the UK continues to be a significant oil and gas producer, ranking as the fourth largest gas producing country, and the eleventh largest oil producer in 2003. Figure B: Major Oil & Gas Producing Countries 2002 The growth of the oil and gas industry over the last 30 years has enabled the UK to benefit from a diverse mix of primary energy sources. Natural gas is now the largest source of primary energy in the economy; improving the environment and reducing emissions. The UK has been self sufficient for oil for 20 years and gas for the last 10 years, and this remained the case in 2003. Whilst the UK is projected to lose its self-sufficiency in energy during the current decade, the industry will continue to meet the majority of the energy needs for the UK economy well into the next one. Figure C: UK Production and Consumption of Primary Energy