UK Energy Bill Outlines 'Diverse Mix' to Ensure Energy Security
The UK Government released details of its energy security strategy alongside its Energy Bill Thursday, detailing a focus on maximizing economic production of oil and gas among other measures designed to improve the country's energy security.
The government's Energy and Climate Change Secretary Ed Davey announced in Parliament a bill that "will support the construction of a diverse mix of renewables, new nuclear, gas and CCS [Carbon Capture and Storage], protecting our economy from energy shortfalls and significantly decarbonizing our electricity supply by the 2030s as part of global efforts to tackle climate change".
In its 'Energy Security Strategy' document, the Department of Energy and Climate Change (DECC) said that North Sea oil and gas reserves would continue to bring significant energy security as well as commercial benefits. But DECC also pointed out that UK Continental Shelf production is on a downward trend and that by 2020 it expects the country to be a net importer of 43 percent of its oil demand and 53 percent of its gas demand, compared to importing 28 percent and 45 percent of the oil and gas it needs currently.
The government said it intends to work to maximize economic production of UK oil and gas resources through further licensing rounds and by providing a fiscal regime that encourages further investment and innovation in the North Sea, while ensuring a fair return for UK taxpayers.
As an example of this, DECC pointed to the UK Chancellor of the Exchequer's decision in July 2012 to create a new field allowance of up to GBP 500 million for large shallow-water gas fields. This, it said, influenced the decision by GDF Suez and its partners Centrica and Bayerngas to proceed with the development of the Cygnus gas field – the largest new gas development in the North Sea's Southern Basin for a decade.
Meanwhile, the government plans to consider the potential for UK unconventional gas production and whether this can be technologically, environmentally and economically sustainable.
In his speech Thursday Energy Secretary Davey added:
"In an era of rising global energy prices, by shifting to more home-grown sources of power and by becoming more energy efficient, we can cushion our economy and households from the fluctuations of world gas markets."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension