Offshore Energies UK (OEUK) recently published their Economic Report 2022

Offshore Energies UK (OEUK) recently published their Economic Report 2022. The report looks at both energy prices & the offshore energy sector's economic contribution and how this impacts on the UK's energy security and climate aims.

Energy Prices

• The energy supply crisis has resulted in a volatile market and high prices.
• Gas prices in 2022 have averaged at 200p/th which is 4 times higher than the average over the last 20 years.
• Prices likely to rise further and winter 2022 prices are trading at over 700p/th.
• Domestic bills have grown by 80% and are expected to rise further.

Economic Contribution

• Oil and gas activity supports almost 214,00 jobs across the UK.
• The oil and gas industry is estimated to support £28.4bn of gross value-added.
• Almost £400bn have been paid in oil and gas production taxes since 1970.
• £7.8bn additional tax estimated for 2022/23 and another £5bn potentially could be raised in the first year of the windfall tax.

Energy Security and Climate Aims

• In 2021 UK oil and gas production met 56% of UK needs (38% of gas and 75% of oil)
• UK's gas production increased by 27% in the first half of 2022.
• UK offshore wind capacity has increased to 12GW (with plans to increase to 50GW by 2030).
• UK aims to have 10GW of low-carbon hydrogen production and up to 30mn mt of CO2 stored per year by 2030.
• Oil and gas production emissions are down 20% since 2018.
• The offshore sector could potentially provide 60% of the UK's emission reduction needs.

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Source: Offshore Energies UK