Energy supply security: UK

Overview

• Oil was 32% of total primary energy supply in 2012.
• The UK became a net importer of oil in 2005.
• Oil demand in 2012 averaged 1.5 million bpd.
• Oil imports averaged 504 000 bpd in 2012, or 37% of demand.
• The Department of Energy and Climate Change (DECC) is responsible for coordinating the country’s response to oil supply emergencies.
• The UK has a Compulsory Stockholding Obligation (CSO) on oil companies.
• Refining companies are required to hold stocks equivalent to 67.5 days of their supplies during the previous four quarters.
• Importing companies must hold stocks equivalent to 58 days.
• At the end of July 2013, the UK held approximately 83 million bbls of oil and oil products.
• In 2012, natural gas was 34% of total primary energy supply.
• In 2012, total natural gas production was 41 billion m³.
• In 2012, gas demand was 78 billion m³.
• The UK imported 47% of its natural gas requirements in 2012.
• UK natural gas security of supply relies primarily on diversification of import sources and infrastructure and supply routes.

Oil

• The UK ranks fourth among IEA countries based on domestic crude oil production.
• 2012 oil production averaged 951 000 bpd.
• UK production is expected to decline for the foreseeable future to below 800 000 bpd in 2020.
• UK crude import sources are relatively widely diversified.
• The UK has a refining capacity of 1.9 million bpd and is a net product exporter.
• Over 200 companies are involved in the distribution and marketing of oil products.
• There are seven major refineries in operation supplying over 90% of inland demand for oil products.
• Vertically integrated IOCs have traditionally dominated the refining sector.
• The government’s preferred option for responding to an emergency is to draw down oil stocks.
• Approximately 40% of the stocks held in the UK are in the form of crude oil.
• There are no restrictions on the location of compulsory stocks.
• Oil companies and importers are required to submit monthly oil returns to DECC.
• The most effective demand restraint measures would be targeted towards the use of transport fuels.
• Demand restraint measures in the UK are set out in the National Emergency Plan for Fuel.
• Fuel switching is not a viable option at present.

Gas

• Natural gas demand peaks during the winter months.
• UK has been a net importer of gas since 2004.
• The sector is privately controlled, including production, distribution and transmission.
• Working natural gas storage capacity in the UK is approximately 4.7 billion m³.
• The UK has a market based regulatory regime for the natural gas sector.
• Fuel switching in power generation is the most common response to reduction sin the natural gas supply.
• The market is able to respond to periods of high demand by increasing imports and storage flows to meet demand without any intervention.

Adapted by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/23072014/uk-energy-supply-security/