Summary (4/4)

Good stewardship will help the basin deliver its full potential

• Industry and government are focused and committed to trying to maximise recovery of UK oil and gas reserves
• Current activity levels must be sustained to avoid rapid production decline
• Exploration, Appraisal and increased recovery from existing fields will all play their part in the future development of the UKCS
• The “Stewardship Process” announced in April 2005 will assist the DTI to work closely with individual field owners to identify opportunities and highlight new means to realise them

Oil and gas will remain the dominant energy sources for the UK economy for the foreseeable future

• The UK economy has become increasingly energy efficient and had reached a plateau in 2004 with primary energy demand of 233 million tonnes of oil equivalent
• In 2004 oil and gas provided 74% of total energy demand in the UK, this could rise to 85% by 2020 despite strong growth renewables
• 41% of UK electricity was generated from gas in 2004. This share is projected to rise to 66% by 2020

The increasing use of gas as a primary fuel has improved the UK’s environmental performance

• Greenhouse gas emissions have reduced by 12.5% since 1990, enabling the UK to currently meet the Kyoto Protocol. This has largely come from the switch from coal to gas for power generation

Oil and gas from the UKCS can continue to make a contribution for decades to come

• If industry invests, government encourages, and regulation is appropriate, then the UK’s oil and gas industry will have a vibrant future producing significant quantities of oil and gas far into this century. It will provide more energy, pay more tax and sustain employment
• In 2020 the UKCS could still be producing 1.5-2 million boe per day, providing 65% of UK total oil demand and 25% of UK gas demand and boost the nation’s balance of payments
• If investment slows, and the fiscal and regulatory regimes are inappropriate, then around 40% of the infrastructure could be decommissioned by 2020
• Which future is realised depends on the good stewardship of these resources by industry, governments and regulators alike