10.7% drop in primary energy production in the UK in 2012

According to preliminary estimates, primary energy production dropped by 11% in 2012 to 122.4 Mtoe. This follows a 13% fall posted in 2011. On an annual basis, oil production was down by 14%, with gas production down by 14%. Low carbon energy production grew: nuclear output was up by 2%; wind output from major power producers was up by 33% reflecting additional capacity; though hydro was down by 9%, due to lower rainfall in the areas where the UK hydro resources are located.

Primary energy consumption increased by 2%, but on a temperature adjusted basis, was down 0.4% continuing the downward trend of the last seven years. Coal accounted for 43% of electricity supplied in 2012, with gas accounting for 28% and nuclear 21%. Coal’s share of generation is at its highest level since 1996, with gas’s share at its lowest since 1996. Low carbon generation accounted for 30% of supply, up from 27% in 2011. Wind generation has grown from 4% in 2011 to 5.5% in 2012. Bioenergy was up by 46% and its share has grown to 1.9%. Hydro share decreased marginally to 1.4%. Nuclear still accounted for over 70% of the UK’s low carbon generation.

Lower gas production contributed to an increased import dependency rate (47% in 2012). Gas imports dropped by 7.4% in 2012, as LNG imports fell by more than 45% (+26% in pipeline imports). UK gas demand was at its lowest level since 1995, due the decreased demand from generators.

In 2012, UK production of crude oil fell again and crude oil imports exceeded UK production, though the UK still exported significant quantities, with production still exceeding net imports. Despite the closure of the Coryton refinery, the UK remained a net exporter of petroleum products, with net exports of 1.6 Mt.