Knowledge Centre
The Role of Gas
Energy policy is at a critical point. The EU and the UK are committed to making significant reductions in the use of carbon and are looking to achieve this through greater use of renewable sources in power generation.
The challenge for the Government is to find a way to deliver this long-term shift in a way that minimises risks to security of supply and affordability. Delivering a low carbon world at a price that significantly increases the numbers of people in fuel poverty or at higher prices relative to other countries will impact social cohesion and the UK’s wider competitiveness.
Natural gas: at the centre of a low carbon future
The proportion of electricity accounted for by gas has risen from 2% in the early 1990s to 40% in 2008. In order to meet electricity demand, the UK must replace approximately one third of its electrical generating capacity in the next 10-15 years. Oil & Gas UK believes the only generating technology which can realistically fill the electricity gap in sufficient quantity is gas and its benefits are many:
- proven technology and reliability
- lowest capital cost
- shortest construction time
- highest generating efficiency
- least difficulty in planning
- half the emissions of carbon dioxide per unit of electricity generated compared to an existing coal-fired power station.
Oil & Gas UK published its report 'Gas: at the Centre of a Low Carbon Future' in September 2010. The report, written by Pöyry Energy Consulting, looks at the challenges of moving to a low carbon energy supply system and considers what practical measures might be needed to achieve Government targets, ensure the lights remain on and homes are kept warm.
Unconventional gas
'Unconventional' gas is the collective term used for shale gas, tight gas and coal bed methane (CBM). There is nothing unconventional or unusual about the gas itself; rather the rocks in which the natural gas is trapped are unique. Though industry has known about these resources for years, it is only with recent technological advances that exploration of these reservoirs has become economically viable.
Development of unconventional gas has now begun in Europe. More information is available here.
