Finance & Investing
News Services
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy


UK Energy Bill Outlines 'Diverse Mix' to Ensure Energy Security

change text size
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."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at


Post a Comment 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.

Related Companies

More from this Author
Jon Mainwaring
European Editor |
 -  Lukoil Would Welcome Investigation int... (Jan 28)
 -  Wood Mac: Steady Licensing Activity Ex... (Jan 27)
 -  Top Tips: Applying for Your First Grad... (Jan 22)
 -  Faroe, Lundin, Cairn Score Norway Lice... (Jan 21)
 -  Cuadrilla Gets Planning Set Back to it... (Jan 21)
Most Popular Articles
From the Career Center
Jobs that may interest you
QA / QC Inspector - Offshore Integrity Tools
Expertise: Pipeline Engineering, QA / QC / Inspection, Subsea Engineering
Location: Houston, TX
Production Manager
Expertise: Production Engineering
Location: Ohio
Senior Reservoir Engineer
Expertise: Reservoir Engineering
Location: Houston
search for more jobs