Below is an excerpt:
2022 has been a year of challenge with the effects of the Covid-19 pandemic still impacting markets and the war in Ukraine affecting so many. Consequences of such a tumultuous year include the energy supply crisis, the fluctuation in commodity prices, the cost-of-living crisis and the onset of recession, which are all inextricably linked.
Gas is the backbone of the UK’s energy mix, meeting 44% of the country’s electricity generation in July this year. The current energy supply crisis demonstrates the challenges countries, such as the UK, face as oil and gas production declines more rapidly than demand, whilst renewable electricity sources – such as hydrogen – are not yet available at the scale required to fill the gap.
While figures from the trade body Offshore Energies UK (OEUK) showed that domestic gas production in the first half of 2022 was 26% higher than the same period in 2021, and it is forecasted that production in 2022-23 will remain stable, production in the medium term is expected to fall by 15% per year in the face of the continued reluctance to invest by operators.
In 2021 for instance, for the first time the UK imported more gas from Norway than it produced. It is predicted that by 2030, the UK will be importing 80%, based on current trajectories.
Excerpted from Energy Voice. To read the full article, click here.