UK energy import dependency increases due to divestment in domestic oil and gas, UK energy association says

A UK energy industry group warns that the state would require large investments to achieve the government goals in offshore wind power and that the UK is at an even greater risk of energy dependence on imports due to the shrinking domestic output of oil and gas.

Marie Oakes

April 1, 2022

According to a report from the industry association Offshore Energies UK (OEUK), approximately 60 billion pounds ($79 billion) is required for the Uk to meet its goal of quadrupling its offshore wind power capacity to 40 gigawatts by 2030, Reuters reports.

However, the government has not said or published how much its offshore wind targets would cost the public.

OEUK says that the UK is at risk of great dependency on foreign energy imports due to reductions in domestic oil and gas production.

Noting that domestic oil and gas output is set to decrease by 15% annually due to divestment.

Additionally, OEUK says this would raise the UK’s energy import dependency by 2030 to 80% for gas and 70% of its oil demand.

This year the investment in its oil and gas sector is set to decrease to approximately 4 billion pounds ($5.2 billion) from around 16 billion pounds in 2014.

“The causes are varied but the UK’s complex regulatory environment, plus the political disagreements around issues like climate change and windfall taxes are all factors deterring investment,” OEUK said.

More oil and gas uk

Support Quality Journalism.

Independent journalism is important now more than ever. The role of journalists in our society is one of watchdogs. One cannot be a watchdog when they are on the government’s payroll.

Make a donation today and support quality, independent journalism.