Offshore Energies UK (OEUK) has submitted a robust response to the government’s consultation on how best to manage the future of the UK’s gas sector.

The consultation looks at how to best ensure the UK’s energy security and the gas it needs for decades to come as supply and demand across the energy mix evolves, within a period of geopolitical and economic uncertainty.

Importantly, the government’s consultation presents decline in UK gas production as an unavoidable geological outcome and that no realistic level of investment can increase domestic supply.

The response from OEUK, submitted to the Government this week, shows why this undervalues the potential of the UK Continental Shelf (UKCS): recoverable gas reserves amount to 456 billion cubic metres (bcm), more than six times the UK’s annual requirement and more than double the NSTA’s production projection of 226 bcm between 2025-2050.

However, these reserves can only be unlocked by attracting new investment with practical reform of taxes and regulations.

OEUK’s response draws on data provided by its members that has also been submitted to government, detailing 111 named projects equivalent to £50bn of investment that could be unlocked with such reform.

The response is also grounded in new independent research from the Westwood global energy consultancy, which provides an evidence-based overview of the UK’s gas infrastructure, including pipeline interdependencies, terminal resilience, throughput trends and risks of policy-driven decline. Furthermore, it is also based on data from the government’s own National Energy System Operator (NESO) published last Autumn.

Enrique Cornejo policy director of OEUK and lead author of the OEUK’s submission to the government, says:

'This is one of the most important energy consultation exercises of recent years. It’s a critical opportunity to signal the UK is open for investment, safeguard energy security and back industries and jobs across the nation.

'Our submission makes clear that the most secure, reliable and lower emission source of gas for the UK is its own domestic production.

'The decline of the UK’s domestic gas supply is being driven by policy not geology. For as long as the nation requires gas, it’s in the national interest to produce as much of that gas as possible at home, where it delivers lower lifecycle emissions, greater energy and industrial security and higher economic value than imported alternatives.

'The health of the UK’s energy security, economy and critical supply chains depends on maintaining robust domestic oil and gas production at the heart of a modern industrial economy.'

OEUK’s submission also highlights that:

Original announcement link

Source: OEUK