UK Energy Trends

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The DTI has just published their latest Energy Trends report: Energy Trends September 2006 (pdf)

The trends make depressingly familiar reading, presenting a dramatic collapse UK’s primary energy sources with the exception of small growth in local coal production.

The main points for the second quarter of 2006:

• Total energy production was 11½ per cent lower than in the second quarter of 2005.
  Oil production fell by 13 per cent compared to the second quarter of 2005 as production from older established fields continued to decline.
• Gas production was 14 per cent lower compared with the second quarter of 2005. Gas imports increased by 30 per cent while gas exports increased by 8 per cent. The UK was a net exporter of gas in the second quarter of 2006, albeit 82 per cent lower than in 2005. Gas demand was 8 per cent lower than a year earlier.
• Total primary energy consumption for energy uses fell by 2½ per cent. However, when adjusted to take account of weather differences between the second quarter of 2005 and the second quarter of 2006, primary energy consumption fell by 1½ per cent.
• Final energy consumption fell by ½ per cent. Industrial consumption fell by 2½ per cent, and other final users consumption fell by 4½ per cent; domestic consumption was virtually unchanged, whilst transport consumption was 2½ higher.
• Coal production was 2½ per cent higher than a year earlier. Coal imports were 11½ per cent higher. Generators' demand for coal was up 10½ per cent.
• Coal supplied 10½ per cent more electricity than in the same period a year earlier, while gas supplied 14 per cent less. Nuclear supplied 6 per cent less. Net imports of electricity were 35 per cent higher than a year earlier.

The reality of this situation can not be masked indefinitely. As depletion drives imports the impact on the macro economy will grow. It is inevitable that UK energy consumption will fall over the next decade, for this reason the UK urgently needs a policy of energy consumption reduction rather than the current (lack of?) policy which can't avoid reduction but rather will achieve it through disruptive demand disruption as the cost of imported energy spiral.

Further discussion here: UK Energy Trends, Q206