Oil & Gas
The oil and gas industry plays a central role in the economy of the United Kingdom. Oil and gas cover about three-quarters of the UK’s primary energy needs. An estimated 120,000 jobs are supported directly or indirectly by the industry. A further 60,000 jobs are supported in the wider economy. The industry exports about £12 billion of goods and services to the rest of the world.
The UK sector is dominated by offshore production. Extraction of natural gas and oil began in the 60s and 70s on the North Sea Continental Shelf. By the end of 2020, 46 billion barrels of oil equivalent had been extracted. Production from the Continental Shelf peaked in 1999. Between 1995 and 2020, proved reserves nearly halved. This was not just the result of less exploration. It was also an effort by the government to find and support alternative fuels.
The industry is on the cusp of a major transformation. Oil and gas and their related products are still in high demand. However, the industry must face the challenge of achieving net zero emissions by 2050. Transitioning to new resources and technologies will be vitally important in the near future. The transition will also lead to the creation of thousands of jobs.
The operating environment in the North Sea is hard and demanding. To overcome its challenges, the industry has become one of the most technologically advanced in the UK. Many new extraction fields are small, but technically complex. Innovative technology is critical in the recovery of oil and gas from increasingly difficult reservoirs and deeper waters.
The oil and gas industry is closely supported by ConRo. The costly research and development requirements for the industry demand technologically advanced, highly reliable materials. These are supplied by major manufacturers such as Indium and Humiseal.