Contribution to the UK Economy

Balance of Trade

The balance of trade in oil and gas (the difference between exports and imports) was £2.0 billion in 2004, about half that in 2003. Net exports of crude oil from the UK amounted to £1.3 billion with £0.7 billion of oil products. The UK balance of trade in natural gas was slightly negative in 2004, by approximately £20 million, the first time since the mid 1990s.

Whilst the UK trade deficit has been growing recently, the UK balance of trade continues to benefit substantially from UKCS oil and gas production (see Figure 9). If the UK had to import all its oil and gas in 2004, the total UK trade deficit would have risen from £40 billion to substantially over £60 billion. This trade gap would be even higher based on recent prices, rising to around £27 billion in 2005.

Figure 9: Balance of Trade – Crude Oil, Oil Products and Gas vs. UK Total