20101231-IEA-Oil_and_Gas_Emergency_Policy_The_United_Kingdom_2010_update_22页_1mb

United Kingdom Energy Overview Summary

Core Content

The United Kingdom (UK) is a significant oil producer among IEA member countries, but it has transitioned from a net exporter to a net importer of both oil and natural gas. The country's energy mix is dominated by oil and gas, which together account for nearly 75% of the Total Primary Energy Supply (TPES). Oil accounts for around one-third of inland energy consumption, while natural gas accounts for approximately 40%, making it the largest fuel source for electricity generation.

Main Points

• Energy Mix: Oil and natural gas account for most of the UK's TPES, with natural gas becoming the primary fuel for electricity generation.
• Oil Production and Demand:
  • Domestic oil production has been declining since 1999 and is expected to drop by 40% by 2020.
  • In 2009, the UK was a net importer of oil, with imports accounting for 12% of total oil consumption.
  • The transport sector accounts for 70% of oil demand, with motor gasoline, gas/diesel oil, and jet kerosene as the main fuels.
• Import Dependency:
  • The UK's import dependency for oil increased from 11.6% in 2009 to 44% by 2020.
  • The UK has a well-developed demand restraint programme, which can be implemented quickly in a crisis.
• Refining Capacity:
  • The UK has a refining capacity of 1.79 mb/d, allowing it to be a net exporter of refined products.
  • However, there is a mismatch between refinery output and demand for specific products like aviation turbine fuel and gas/diesel oil.
• Natural Gas:
  • Natural gas became the UK's largest fuel source for electricity generation in the 1990s.
  • The UK is a net importer of natural gas, with import dependency rising to 31.3% in 2009.
• Emergency Policies:
  • The UK is a member of the IEA and has a legal framework (Energy Act 1976) to manage oil and gas supply emergencies.
  • The UK can lower its stockholding obligations on industry or implement demand restraint measures during crises.
• Stockholding Obligations:
  • The UK does not hold public stocks but imposes obligations on industry to maintain minimum levels of oil stock.
  • Stocks are categorized into three product types: motor spirit and aviation fuels, middle distillates, and fuel oils.
  • Compulsory stocks can be held in the UK or in other EU countries under bilateral agreements.

Key Information

Oil Data Highlights

• Production: Declined since 1999, expected to drop by 40% by 2020.
• Demand: Decreased gradually since 2005, projected to fall by 3% by 2015 and 5% by 2020.
• Net Imports: 12% of total oil consumption in 2009.
• Import Sources: Mainly Norway, Russia, Algeria, and Venezuela.
• Refining Capacity: 1.79 mb/d, allowing net exports of refined products.
• Stockholding:
  • Minimum stock levels are required for three categories of products.
  • Stocks can be held in the UK or under bilateral agreements with other EU countries.

Natural Gas Data Highlights

• Production: Declined since 2000, with a peak in 1995.
• Demand: Increased from 1985 to 2009, with a peak in 2000.
• Net Imports: 28.37 mcm/y in 2009.
• Import Dependency: Rose to 31.3% in 2009.
• TPES Share: Natural gas accounted for 39.5% of TPES in 2009.
• Consumption by Sector:
  • Industry: 15.839 mcm/y
  • Residential: 26.478 mcm/y
  • Others: 13.135 mcm/y
• Emergency Policy:
  • The UK has a National Emergency Strategy Organisation (NESO) within the DECC Energy Resilience Team (ERT).
  • The UK has formal bilateral agreements with Denmark, Ireland, Sweden, and the Netherlands for stockholding.

Infrastructure and Supply Chain

• Pipelines: The UK has an extensive pipeline network, around 4800 km in 2010, used for both short and long-distance transport.
• Ports: Four major land-based port terminals (Sullom Voe, Flotta, Forties, Teesside) supply over a third of crude oil to UK refineries.
• Distribution: Finished petroleum products are distributed via pipeline (51%), sea (34%), and rail (15%) to 60 major distribution terminals.
• Retail Filling Stations:
  • There were 9,283 filling stations in 2008.
  • Supermarket chains supply about 40% of the retail fuels market.

Emergency Response

• Decision-Making: The Department of Energy and Climate Change (DECC) coordinates emergency response, in consultation with Cabinet colleagues.
• Stock Drawdown:
  • Implemented by reducing companies' stockholding obligations.
  • Companies are expected to draw down stocks within an agreed time frame (likely one month).
  • DECC monitors compliance and can use legal powers if necessary.
• Demand Restraint:
  • Can be implemented in the event of a crisis.
  • The UK has a National Emergency Plan for Fuel (NEP-F) outlining possible measures.

Conclusion

The UK's energy landscape is shifting due to declining domestic production and increasing reliance on imports. The country has a robust emergency policy framework, including stockholding obligations and demand restraint measures, to ensure energy security. With the continued decline in oil production and the rise in import dependency, the UK will need to adapt its infrastructure and policies to maintain stability in its energy supply.