The UK
must drive down demand for oil and gas rather than undermining its own
supplies, Offshore Energies UK’s Chief Executive has warned in a keynote
speech.
David
Whitehouse was speaking at the P&J Live venue in Aberdeen for the launch of
OEUK’s Business
Outlook report. The report is an in-depth analysis of the
UK’s current and future energy needs – and how to meet them while also cutting
greenhouse gas emissions. OEUK represents 400 offshore oil, gas and wind
operators and their supply chain partners.
Whitehouse
said cutting demand was essential to reaching net zero, contrasting that with a
key finding of the report, that the number of UK homes reliant on gas boilers
is actually increasing – even though the government has banned them from being
installed in new homes from 2025. A record 1.8 million new
boilers are being installed in homes annually, including in new
homes.*
The report
said: “Household
heating is the UK’s second largest use of energy and the largest component of
gas consumption ... About 85% of homes are heated by gas and National Grid expects
the number to continue to rise slowly until 2025. Even the most ambitious
scenarios from National Grid see gas being the largest domestic heating source
until at least 2032.
“The UK
installed around 42,000 home heat pumps in 2021 and has the lowest installation
rate in Europe, with householders collectively installing gas boilers 120 times
faster than low carbon systems. For context the UK government has
set a target of installing 600,000/year by 2028, while National Grid says that
900,000/year (2,466 installations per day) may be needed.
Whitehouse said
in his speech:
“Today, 76% of the UK’s energy needs are met by oil and gas. Oil powers the 32
million diesel and petrol cars on our roads and gas boilers provide heat and
hot water to 85% of homes – over 23 million of them and rising. By 2025 the
number of homes reliant on them is predicted to reach 24 million.”
He warned that
if the UK wanted to tackle climate change it needed to “get serious” about
driving down demand. But while that demand existed it should be met as
much as possible from UK resources.
He said:
“Almost 40% of our domestic and industrial energy needs are met by natural gas,
and the North Sea basin and wider UK Continental Shelf provides close to half
of that total. It is only because of this vital resource and our offshore work
force that we are not reliant on Russian imports of gas.”
“As
together, we build a cleaner future there is no simple choice between oil and
gas on the one hand and renewables on the other – the reality is that we need
both.”
The
report also showed the importance of finding and opening new oil and gas
fields, pointing out that 12 new gas fields, opened in just the last five
years. now supply 30% of the UK’s gas. Without more and similar investment, it
warned, UK oil and gas production could fall 80% by 2035 – putting the UK at
greater risk of future energy crises..
Whitehouse said OEUK was committed to net zero – but also to
supporting the UK’s energy security. “Achieving net zero will take us many
years, a huge amount of work and long-term planning across sectors. We
will continue to need domestic oil and gas in those years … But nine
out of 10 of North Sea operators are cutting back investment and at least nine
major oil and gas operators have publicly confirmed plans to halt or reconsider
some project plans for producing oil and gas. Some projects will proceed but
not the number we need as a country.
“I
am concerned that we are not on the right path for energy security, or for a
successful energy transition. We have to change this.”