• 30 mins Thanksgiving Gas Prices At 3-Year High
  • 5 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 7 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 10 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 10 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 11 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 13 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

Alt Text

The Hidden Cost Of Electric Cars

As countries across the globe…

John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

More Info

UK Embraces Renewable Energy, Albeit Reluctantly - As Long As it Pays for Itself

UK Embraces Renewable Energy, Albeit Reluctantly - As Long As it Pays for Itself

According to Britain’s Oil & Gas lobby group, while Britain’s oil and gas industry is in sharp decline, it remains fundamental for jobs and the UK economy.

Last year taxes on oil and natural gas production provided 20 percent of Britain’s total corporation taxes received by the Exchequer, with the country’s hydrocarbon sector employing 440,000 people.

The bad news?

Of these nearly half-million British energy workers, 45 percent are in Scotland, where the nationalist Scottish National Party firebrand, SNP first Minister Alex Salmond, is vigorously pushing for a referendum on Scottish independence in autumn 2014.

But, back to Britain’s current energy situation. According to Britain’s Oil & Gas, Westminster is forecasting that even amid vast investment into renewable energy sources, the UK will still need oil and gas for 70 percent of its energy needs by 2020, even though Britain is the third largest natural gas and second largest oil producer in Europe and 19th largest in the world for both oil and natural gas.

Wait, it gets worse.

Oil and natural gas production from Britain’s North Sea offshore fields peaked in 1999, leaving now just 40 percent of the field’s oil and gas reserves remaining, turning Britain into a net importer of hydrocarbons, with supplies coming from a multitude of countries. The SNP is also keeping its eye on the UK’s energy crown jewel – North Sea oil and gas. An integral element underwriting the SNP’s future economic policies, Scotland would receive a 90 percent geographical share of North Sea oil and gas fields based on a division under international maritime law of the UK's territorial waters after independence, allowing Edinburgh to claim 81 percent of the UK’s current oil and gas receipts, recently worth between $10 - $19.34 billion annually, depending on the estimates one reads.

Consider what the British government would lose should Scotland depart. Last year North Sea production provided 49 percent of Britain’s primary energy demand (68 percent of its oil needs and 58 percent of its natural gas). In 2011 overall production was 656 million barrels equivalent, an average of 1.8 million boe per day, which nonetheless was a 19 percent decrease from 2010 production rates.

Accordingly, renewable energy is looming larger and larger in Westminster’s portfolio. But the Tories are seeking to slash subsidies to the country’s wind energy producers by slashing onshore wind subsidies by 25 percent instead of the 10 percent reduction originally proposed by the Department of Energy and Climate Change.

But the British government’s rather sluggish commitment to renewable energy up to now has its critics. Steve Sharratt from Bio Group, which operates a network of facilities producing renewable energy from food waste observed, “If Portugal can increase its reliance on green electricity from 17 percent to 45 percent in just five years, our own leaders have little excuse for our measly 3 percent. Their new target is to have 60 percent renewables or energy production by 2020 and they are well on track. If they can, why can’t we in the UK?” The Wind power lobby group Renewable UK has announced that it is considering a judicial challenge if the Treasury slashes onshore wind subsidies.

However one analyses the fact, it would seem that the British government is facing some hard energy choices over the next two years. Even if the SNP’s Scottish independence referendum is defeated, the fact remains that North Sea oil production is in decline. As a result, the UK can either face rising energy import bills, or it can begin to develop other indigenous energy sources, including renewable.

In such a situation, voting to slash wind power energy is a short-sighted policy at best, as the wind will continue to blow after North Sea oil runs out – or is under the purview of an independent Scotland.

By. John C.K. Daly of Oilprice.com




Back to homepage


Leave a comment
  • RolftheGanger on July 13 2012 said:
    The article accepts the UK Government downward revision in good faith. However predictions depend on the assumptions made.

    One of the UK Government assumptions is that they need to manipulate expectations to try to dampen demand for self government or full financial autonomy from Scotland.

    In the 1970s a previous UK Government suppressed publication of the McCrone Report and in similar fashion issued greatly reduced predictions of oil production and revenues from the North Sea.

    No wonder 71% of Scots do not trust Westminster, whereas more than that trust the SNP Government. Once trust is destroyed, a relationship is ended. The confirmation will come in a solid majority Yes vote in 2014.
  • Brian on October 29 2012 said:
    Alternative Green Energy

    “Many people do not realize that when you run a car or truck on gasoline of diesel fuel, you are actually running it on hydrogen. And all we are doing is using the hydrogen from water. And under the National Bureau of Standards figures shows that when you use water, the energy release is roughly two and a half times more powerful then that of gasoline. So water is a very powerful fuel.” Stan Meyers 1992

    Stanley Meyer was one of the most important inventors since Nicola Tesla. He was the first inventor to advance High Efficiency Electrolysis Technology to it’s perfection, including running a car completely on tap water. This is based on the original wet cell design that started it all (it is not the Hybrid Cell Design plans).

    Learn How to Easily Replicate Hydrogen Hybrid Technology, used for over 50 Years by The Military, NASA, Scientists, Universities and recently Car Makers such as Honda, BMW and Lexus… Guaranteed! For over 50 years international institutions, universities, engineering associations and independent testing labs have been compiling documentation and test results proving that small amounts of hydrogen added to the internal combustion engine significantly reduces toxic emissions, increases engine performance and provides a more complete burn of the fuel resulting in better gas mileage.

    Read this link for detailed information Here: http://marketingonlineinfo24.blog.com/about/

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News