The Significance of North Sea Oil and Gas
"Without oil the great squeeze and shake out of the economy might very well have broken the back of the government. So what was achieved by all the roustabouts, engineers, divers, pilots and the financiers was epic and central."
"And yet, barely a word about it appears in Margaret Thatcher's memoirs or those of most other ministers. It's as if an attempt was made to airbrush this industry out of Britain's national story. Which would be shameful."
Andrew Marr in 'Andrew Marr's History of Modern Britain', BBC TV
Oil and gas facts and figures
UK oil and gas production satisfied 94 per cent of oil demand and 68 per cent of gas demand in 2009
The UKCS has the potential to satisfy half the UK’s oil and gas demand in 2020. (Oil & Gas UK, 2010)
Production of oil and gas boosted the balance of payments by £27 billion in 2009 and the supply chain added more than £5 billion in the export of goods and services. (Oil & Gas UK, 2010)
The industry paid £6.4 billion in corporation tax in 2009/10, almost 20 per cent of the total received by the Exchequer; this is set to increase to £9.4 billion this year. (Oil & Gas UK, 2010)
The UKCS remained the largest investor among the industrial sectors of the economy; capital investment was £4.7 billion in 2009 but is expected to rise to between £5 billion and £6 billion this year (Oil & Gas UK, 2010)
A total of 39.5 billion barrels of oil and gas have been recovered from the UKCS; further overall recovery is forecast at between 15 and 24 billion barrels.
The UK oil and gas supply chain has an annual turnover of £13 billion and exports around the globe are worth £5 billion to the UK.
The UK Government's 26th licensing round in 2010 offered a record-breaking number of exploration licences.
Since the beginning of oil and gas production in the North Sea 39 billion barrels of oil equivalent (boe) have been extracted.
Up to 25 billion barrels remain to be produced from the UK sector of the North Sea (Oil & Gas UK, 2010)
The industry produces three million barrels of oil and gas a day - the UK is still a bigger oil producer than Kuwait, Nigeria or Indonesia.
The North Sea currently provides three quarters of the UK's total prime energy needs. Even with Government targets for renewables, it is predicted that the country will still need to rely on oil and gas for 70% of its energy in 2020. (Oil & Gas UK)
In 2020, the UK sector of the North Sea should still be producing sufficient oil and gas to supply 60% of UK oil demand and 25% of UK gas demand (sufficient to meet the entire domestic gas demand ot the entire UK). (Oil & Gas UK)
Our oil and gas industry is underpinned by a strong UK engineering and manufacturing sector, which is the single largest industrial investor in the UK economy, with an annual expenditure in oil and gas exploration, production and operations of around £12 billion, and is the most important industrial contributor to UK GVA (Gross Value Added). (Oil & Gas UK)
In 2008-09, with prices at record highs, oil and gas production companies paid £13 billion to the Exchequer, the equivalent of around 30% of UK corporation tax receipts. (Oil & Gas UK)
The UK oil and gas industry sustains 440,000 high-value, highly-skilled jobs in the UK. Around 44% of them in Scotland. (UK Oil & Gas 2010)
It is estimated that the oil and gas sector accounts for some 26% of Aberdeen's jobs.
In 2009, the UK produced nearly 2.5 million barrels a day. By 2020, the North Sea could still be producing 1.5 million barrels per day. (Oil & Gas UK, 2010)
Natural gas powers about 35% of UK electricity generation. This is forecast to rise to over 50% by 2020.
The oil and gas industry has invested over £350 billion and paid over £240 billion tax (£8 billion this year).
The UK oil and gas industry's supply chain has a turnover in excess of £16 billion pa. It exports more than £5 billion per annum (growing at 10% per year).
Total sales in the Scottish oil and gas sector in 2006 rose by 10.6% to £12.9bn. International sales accounted for 33.8%. Sales to the USA rose 33.6% and were estimated at £1.22bn.
It is estimated that there are 900 companies serving the energy sector in Aberdeen.
Around 40% of the turnover of the 300+ international oil companies based in Aberdeen is estimated to be overseas. This figure is increasing.
There are more than a hundred developed oil and gas fields in the Northern and Central North Sea.
The UK oil and gas supply chain exports around $7 billion worth of goods and services each year, representing one-quarter of the UK’s total energy sector exports.
The UK oil and gas supply chain has between 5% and 8% of the world market in equipment and services.
The UK is currently the world’s 13th largest producer of oil and gas overall, with daily production of around 2.5 million barrels of oil equivalent (boe).