UK gas producers boost domestic supplies by a quarter in just six months

By Hamish Penman

August 24 2022, 2:02 pm

Harbour Energy's Tolmount platform. Image: Harbour Energy

Gas companies have stepped up to the plate in recent months to help the UK cut its dependence on imports.

Domestic production in the first half of 2022 was 26% higher than the same period in 2021, according to industry body Offshore Energies UK (OEUK).

That is enough to heat more than 3 million homes for a year.

Westminster is striving to expand the availability of domestic energy supplies to replace imports from Russia.

A worker adjusts a valve wheel on a section of pipework on the Gazprom PJSC Chayandinskoye oil, gas and condensate field in the Lensk district of the Sakha Republic, Russia.

Europe has been plagued by energy shortages for the best part of a year, progressively driving up oil and gas costs.

The problem was exacerbated by the Kremlin’s invasion of Ukraine in February, and the subsequent removal of Russian hydrocarbon supplies.

UK’s energy links with Russia

A recent House of Commons briefing confirmed the UK broke all energy links with Russia in June 2022, when no oil, gas or coal was imported from the country.

As it stands, gas is the backbone of the UK energy mix, and was responsible for 44% of electricity generation in July.

It also heated 85% of homes, as well as fuelling other industrial processes producing materials and goods.

But it is widely feared a cold winter in Europe may heap pressure on gas supplies, swelling household bills further.

To reduce the likelihood of such an event happening, increases in domestic production need to be sustained.

IOG platform issue Blythe — The Noble Hans Deul rig drilling and Blythe platform working on IOG’s Saturn Banks development.

OEUK says that can only happen with continued investment in reserves.

Increases in the first half of the year were a result of a range of factors, including the start-up of new fields in the southern North Sea.

These included Harbour Energy’s Tolmount field and IOG’s Saturn Banks project.

Planned shutdown activity has also been lower due to the scale of work completed in 2021, as well as companies wanting to make hay while the sun shines.

‘We don’t know what winter will bring’

OEUK sustainability director Mike Tholen said: “While we don’t know what winter will bring for the UK this year, we know it is coming.

“We must be prepared for the worst and hope for the best to support UK energy security.

“UK gas producers have already ramped up domestic supplies by 26% in the first half of this year, compared to the same period last year. The massive increase in our support for the UK’s gas needs can only be sustained by substantial ongoing investment from gas producer companies.”

The increase in production saw about half of the UK’s gas needs in recent months met by home-produced resources.

OEUK sustainability director Mike Tholen.

OEUK is warning that any reduction in UK supplies of gas will increase consumer costs further, as it would decrease availability of international supplies and ramp up prices.

The trade body also says the current situation underlines the challenges countries face if oil and gas production declines more rapidly than demand.

Mr Tholen added: “If we are to continue our efforts to protect UK gas supplies, which remains the backbone of our energy mix for electricity, heating and industrial processes, we need politicians of all parties to support energy produced here in the UK with all the benefits that brings for taxes, energy security and jobs.

“It’s all the more important at a time when we can’t afford to tighten supplies even further, which is what will naturally happen if domestic production of gas isn’t maintained.”