Download Energy Offshore energy overview - Marine Socio

The Marine Socio-Economics Project (MSEP)
is a project funded by The Tubney Charitable Trust and coordinated by NEF
(the new economics foundation) in partnership with the WWF, the MCS,
the RSPB, and The Wildlife Trusts. The project aims to build socio-economic
capacity and cooperation between NGOs and aid their engagement with all
sectors using the marine environment.
Offshore energy in the UK:
an overview
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How much energy do we get out of the sea
and how important is it to the UK economy?
The UK is a net importer of energy, with a
dependency level on imports of about 43%.1
The energy industries in the UK make up 3.5 %
of GDP and directly employ 176,000 people.2
Total final consumption of UK energy products
can be divided into four sectors: transport
(36%), domestic (29%), industrial (17%), and
the services sector (13%). The remaining
5% is used for non-energy purposes3 (e.g.
lubricants, paraffin waxes, bitumen/asphalt,
and solvents).4
Although supply from renewables has been
increasing in the UK, fossil fuels (nonrenewable) remain the dominant source
of energy, accounting for 87.3% of supply.5
Virtually all (99%) of UK oil and gas comes
from the sea,6 and the industry remains the
major energy contributor to the UK economy,
followed by the electricity sector, including
renewables.7 Figure 2 shows the 2013 energy
mix for the UK.8
Oil and gas are finite resources and their
production is following a trend of long-term
decline since production peaked in 1999. In
Transport
Domestic Use
Industrial Use
Service Sector
5%
13%
36%
17%
Non Energy
Purposes
29%
Figure 2: UK energy mix (2013)
1% 1%
Coal
Petroleum
Natural Gas
5%
7%
19%
Bioenergy
and Waste
Nuclear
Wind and
Natural Flow
Hydro
35%
32%
Net Imports
1 The Department of Energy and Climate Change (2013) Digest
of UK Energy Statistics 2013, National Statistics, London: TSO.
5 The Department of Energy and Climate Change (2013) Digest
of UK Energy Statistics 2013, National Statistics, London: TSO.
2 The Department of Energy and Climate Change (2013) UK Energy
in Brief.
6http://www.oilandgasuk.co.uk/knowledgecentre/operations.cfm
3 The Department of Energy and Climate Change (2013) Energy
Consumption in the UK, Chapter 1.
4http://www.ipcc-nggip.iges.or.jp/public/2006gl/pdf/3_Volume3/
V3_5_Ch5_Non_Energy_Products.pdf
1
Figure 1: UK Energy consumption by sector
(DECC, 2013)
7 The Department of Energy and Climate Change (2013) UK Energy
in Brief.
8https://www.gov.uk/government/publications/total-energy
section-1-energy-trends
MSEP Facts & Figures Series 3: Offshore energy in the UK: an overview
Figure 3: Total UK oil production for offshore fields (1975-2013)
160,000,000
140,000,000
120,000,000
m3
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
20
11
20
13
0
Source: https://www.og.decc.gov.uk/pprs/full_production.htm
Figure 4: UK offshore energy generation
800,000
722,810
Offshore Wind
700,000
Gwh of Energy
Oil
-41%
600,000
500,000
Gas
459,253
427,421
400,000
-50%
300,000
228,575
200,000
100,000
0
1,754
2009
10,879
+520%
2010
2011
2012
2013
2012, UK energy production was down 10.7%
compared to 2011, mainly due to lower levels of
oil and gas production.9
and investment in renewables has been too slow
to fill the gap (Figure 4).
9 The Department of Energy and Climate Change (2013) Digest
of UK Energy Statistics 2013, National Statistics, London: TSO.
12http://www.green-alliance.org.uk/uploadedFiles/Publications/reports/
The%20future%20of%20UK%20infrastructure_WEB.pdf
10https://www.og.decc.gov.uk/pprs/full_production.htm
13 The Crown Estate (2013) Offshore Wind Operational Report.
Global spending on renewables has increased
more than six-fold over the last decade and the
As Figure 3 shows, over the past decade the
UK is exceeding this global average. Low-carbon
level of offshore oil production has declined
infrastructure projects in the UK are worth more
significantly by around 50 million m3.10
than four times high-carbon ones and offshore
In 2013, the UK Department of Energy and
wind projects alone are worth more than four
Climate Change (DECC) estimated that the UKs times planned gas power spending.12 Almost
total energy production was 6.6% lower than in
five million tonnes of carbon dioxide equivalent
2012, due to record low production levels of coal, emissions were avoided in 2012 through lowoil, and gas.11 In terms of offshore production/
carbon energy projects across The Crown Estate’s
generation, the impact is clear. As both oil and
portfolio as an alternative to fossil fuel generation,
gas production decline, we are importing oil and the majority directly as a consequence of
gas from elsewhere as the level of development operational offshore wind farms.13
11https://www.gov.uk/government/uploads/system/uploads/
attachment_data/file/295346/1_Total_Energy.pdf
2
MSEP Facts & Figures Series 3: Offshore energy in the UK: an overview
To see all current marine offshore wind projects
in the UK, download the 2013 timeline from
Renewable UK:
http://www.renewableuk.com/en/publications/
index.cfm/offshore-wind-Project-timelines-2013
The potential benefits that marine renewables
could bring to the UK are three-fold:
•
•
•
Carbon emissions reductions;
Briefings on Marine Energy
(renewable and non-renewable)
1. Offshore energy in the UK:
renewables – offshore wind
2. Offshore energy in the UK: non-renewables –
oil and gas
3. Offshore energy in the UK: an overview
Increased security of energy supply; and
4. Offshore energy in the UK: renewables –
algal biomass
Economic benefits (including job creation
and inward investment).
5. Offshore energy in the UK: renewables –
marine energy (wave and tidal)
The UK, however, is still behind many European
countries and had the ninth lowest share
amongst EU countries of low carbon energy in
2011, with the UK’s share of supply is around
half (13%) that of the EU average (26%).14
As an island nation, the UK’s potential for
renewable energy comes in great part from the
sea.
Series 3 was written and researched by Fernanda Balata
(Researcher at NEF) and Chris Williams (Marine SocioEconomics Project Coordinator at NEF). All the data examined in
this series come from the UK Government, The European Wind
Energy Association (EWEA), the Crown Estate, Renewable UK,
OIl & Gas UK, the Chamber of Shipping or Eurostat - unless
otherwise referenced.
These data sources can be found on the MSEP website:
http://www.mseproject.net/data-sources
The UK’s total practical offshore renewable
resource (including wind with fixed and floating
foundations, wave, tidal range, and tidal stream)
is about 531GW or 2131TWh, equal to more
than six times its current annual electricity
demand.15 But to meet this potential, there is
an urgent need for timely investments that can
increase deployment and reduce costs.
Investment in the UK’s offshore renewable
energy sources can help create jobs and
support a sustainable UK energy infrastructure.
Combined with other low-carbon energy
generation, it will also help reduce UK emissions
in line with its carbon budgets and put the
country on track to meet the target of an 80%
cut in emissions by 2050.16
14 The Department of Energy and Climate Change (2013) UK Energy in
Brief.
15http://www.offshorevaluation.org/downloads/offshore_valuation_
exec.pdf
16https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48128/2167-uk-renewable-energy-roadmap.pdf
3
Published by the New Economics Foundation (NEF), June 2014.
www.neweconomics.org Tel: 020 7820 6300 Registered charity number 1055254.