North Sea petroleum reserves signal growth opportunity

The UK oil and gas market is expected to register a CAGR of around 7.5% during the forecast period. The COVID-19 pandemic significantly affected all the services associated with the country's oil and gas industry. The primary energy consumption fell by 11% in 2020, which directly impacted the production and prices of crude oil and natural gas globally. The demand for fuels also declined due to industrial and transport suspensions.

Thus, in 2020, the overall investment in the UK-based energy industries was 23%, down from 2019 figures. The government's commitment to increasing the indigenous production of energy commodities and the strong participation of private players may drive the market in the future. However, the global inclination toward net-zero emissions goals can constrain the market in the coming years.

Key highlights

The UK has enormous petroleum reserves in the North Sea. Though the region ranks 41 in the global proven oil and gas reserves, it recently added new proven natural gas reserves. The largest gas discovery of the decade was the Glengorm gas field, which has a capacity equivalent to 5% of the UK's annual gas demand.

The growing penetration of renewables in the energy industry is projected to be the biggest obstacle for the UK oil and gas industry.

Growth of renewables expected to restrain the market

The country is on the track of progress to widen the renewables coverage in the energy sector. The various end user applications of energy products, like power generation, transport fuels, heating, and industrial energy uses, are witnessing stiff competition between renewable and fossil-fuels-based energy sources in the current scenario.

The share of renewables in the power generation mix was recorded at 41% in 2020. The UK government pledged to increase the share to 100% by 2035. Several policies and programmes are being implemented in favour of renewable energy sources to increase the share in the electricity sector and heating applications.

Key topics covered:

• INTRODUCTION.
• RESEARCH METHODOLOGY.
• EXECUTIVE SUMMARY.
• MARKET OVERVIEW.
• MARKET SEGMENTATION.
• COMPETITIVE LANDSCAPE.
• MARKET OPPORTUNITIES and FUTURE TRENDS.

Companies mentioned:

Shell PLC, BP PLC, TotalEnergies SE, Chevron Corporation, Cadent Gas Ltd, ESSO UK Limited, BG Group Limited, Valaris PLC, Centrica PLC, Dana Petroleum E&P Limited.

Read the article online at: https://www.worldpipelines.com/special-reports/08082022/north-sea-petroleum-reserves-signal-growth-opportunity/