Outlook for the UKCS in 2007

Gas Production

In 2006, about 80 billion cubic metres of gas were produced, a 7% drop compared with 2005. This was below the forecast. Some of this can be attributed to lower volumes of gas produced in association with declining oil production. However, higher prices (early in the year) and mild weather (later in the year) reduced demand by 5% overall compared with 2005 and the arrival of new imports in the autumn meant that some UKCS gas was not needed to supply the market.

From 1995 to 2003 the UK was self sufficient in gas, but became a net importer again in 2004. With sustained investment, it is still expected that the proportion of gas demand satisfied by indigenous production could be 60% or possibly more in 2010.

Figure 29: UKCS Gas Production Forecast 2004-2010