Oil and gas industry in the United Kingdom

The oil and gas industry plays a central role in the economy of the United Kingdom.^[1] Oil and gas account for more than three-quarters of the UK's total primary energy needs.^[2] Oil provides 97 per cent of the fuel for transport, and gas is a key fuel for heating and electricity generation. Transport, heating and electricity each account for about one-third of the UK's primary energy needs. Oil and gas are also major feedstocks for the petrochemicals industries producing pharmaceuticals, plastics, cosmetics and domestic appliances.^[2]

Although UK Continental Shelf production peaked in 1999, in 2016 the sector produced 62,906,000^[3] cubic metres of oil and gas, meeting more than half of the UK's oil and gas needs. There could be up to 3.18 billion cubic metres of oil and gas still to recover from the UK's offshore fields.

In 2017, capital investment in the UK offshore oil and gas industry was £5.6 billion. Since 1970 the industry has paid almost £330 billion in production tax. About 280,000 jobs in the UK are supported by oil and gas production. The UK oil and gas supply chain services domestic activities and exports about £12 billion of goods and services to the rest of the world.^[2]