Oil and gas industry in the United Kingdom

The oil and gas industry plays a central role in the economy of the United Kingdom. ^[1] Oil and gas account for more than three-quarters of the UK’s total primary energy needs.^[2] Oil provides 97 per cent of the fuel for transport, and gas is a key fuel for heating and electricity generation. Transport, heating and electricity each account for about one-third of the UK’s primary energy needs. Oil and gas are also major feedstocks for the petrochemicals industries producing pharmaceuticals, plastics, cosmetics and domestic appliances.^[2]

Although UK Continental Shelf production peaked in 1999, in 2016 the sector produced 1.73 million barrels of oil and gas, meeting more than half of the UK’s oil and gas needs. There could be up to 20 billion barrels of oil and gas still to recover from the UK’s offshore fields. Oil and gas will still provide two-thirds of total primary energy by 2035.^[2]

The oil and gas industry generates significant economic benefits for the UK. In 2017, capital investment in the UK offshore oil and gas industry was £5.6 billion. Since 1970 the industry has paid almost £330 billion in production tax. About 280,000 jobs in the UK are supported by oil and gas production. The UK oil and gas supply chain services domestic activities and exports about £12 billion of goods and services to the rest of the world.^[2]

Overview[]

The oil and gas industry in the United Kingdom produced 1.42 million BOE per day^[3] in 2014, of which 59%^[3] was oil/liquids. In 2013 the UK consumed 1.508 million barrels per day (bpd) of oil and 2.735 trillion cubic feet (tcf) of gas,^[4] so is now an importer of hydrocarbons having been a significant exporter in the 1980s and 1990s.

98% of production comes from offshore fields^[5] and the services industry in Aberdeen has been a leader in developing technology for hydrocarbon extraction offshore. Historically most gas came from Morecambe Bay and the Southern North Sea off East Anglia, but both areas are now in decline. Oil comes mainly from the North Sea Central Graben close to the median line with Norway in two main clusters – around the Forties oilfield east of Aberdeen and the Brent oilfield east of Shetland. There have been recent discoveries in challenging conditions west of Shetland.^[1] As of 2012 there were 15,729 kilometres (9,774 mi) of pipelines linking 113 oil installations and 189 gas installations.^[6] The only major onshore field is Wytch Farm in Dorset but there are a handful oil wells scattered across England. There is significant shale potential in the Weald and in the Bowland Shale under Lancashire & Yorkshire, but only a few wells have been drilled to date.

The UK's strengths in financial services have led it to play a leading role in energy trading through markets such as ICE Futures (formerly the International Petroleum Exchange). The price of Brent Crude from the British North Sea remains the major benchmark for the international oil trade, and the National Balancing Point market is the benchmark for most of the gas traded across Europe.^[7] The difficult offshore conditions make the UK a high-cost producer; in 2014 the average development cost was $20.40/boe and the operating cost was $27.80/boe for a total of $48.20/boe.^[3] In 2014 the industry spent £1.1bn on exploration, £14.8bn on capital investment and £9.6bn on operating costs.^[3] Fields developed since 1993 are taxed through an additional corporation tax on profits, in 2014 the industry generated £2.8bn in direct taxes.^[3]

Early history[]

After the Scottish shale oil industry reached its peak in the 19th century, the British government became increasingly concerned to find secure sources of fuel oil for the Royal Navy. This led to a nationwide search for onshore oil during the First World War and a modest discovery of oil at Hardstoft in Derbyshire.

The UK relied on imports of fuel from the United States and the Middle East. Imports in the period 1912 to 1919 were as follows.^[8][9]  

UK petroleum imports, 1912 to 1919

	UK import 1912		Port of London import 1913		Port of London import 1919
Oil type	Import m3	Value £/m3	Import m3	Value £/m3	Import m3	Value £/m3
Crude oil	51.0	4.45	–	–	–	–
Lamp oil	665,353	1.54	317,618	3.67	284,534	9.13
Petroleum spirit	379,872	3.45	318,955	8.06	575,077	17.32
Lubricating oil	301,835	2.31	119,542	7.92	145,222	22.58
Fuel oil	217,864	0.89	215,691	2.73	189,772	6.00
Gas oil	333,845	1.15	–	–	–	–

The country’s oil resources were nationalised by the Petroleum (Production) Act 1934, and a fresh attempt was made to find oil on the UK mainland. The outbreak of World War II accelerated this search and led to a number of wells being drilled, primarily around Eakring in the East Midlands near Sherwood Forest. During World War II over 300,000 tons of oil or 2,250,000 barrels was produced by 170 pumps; and production continued until the mid-1960s.^[10]

In the 1950s, the focus turned to southern England where oil was discovered in the formation at 1,600 metres (5,200 ft), followed by the development of the Wytch Farm oilfield. The link between onshore and offshore oil in the North Sea was made after the discovery of the Groningen gas field in The Netherlands in 1959.^[11]

Exploration and appraisal[]

Drilling[]

Since 1965, 3,970^[12] exploration and appraisal wells have been drilled offshore on the United Kingdom Continental Shelf. In 2014, 104 new wells and 54 sidetracks were drilled.^[3]

Over four decades since the 1960s, the industry has spent £58 billion by 2008 (equivalent to £78 billion in 2019)^[13] on exploration drilling.^[14] In 2008, £1.4 billion was spent finding new oil and gas reserves.^[14]

Discoveries[]

In 2008, 300–400 million barrels (48,000,000–64,000,000 m³) of oil and gas equivalent (BOE) were discovered. The average size of the oil and gas fields discovered between 2000 and 2008 was 26 million BOE,^[15] compared with an average of 248 million BOE in the ten years from 1966.^[15]

Production[]

In 2008, the UK was the 14th largest oil and gas producer in the world (10th largest gas producer and 19th largest oil producer).^[16] In Europe the UK is second only to Norway in oil and gas production.

Oil and gas production from the UK sector of the North Sea peaked in 1999, but the UK remains a substantial producer today. Over the last four decades, 39 billion BOE have been extracted on the UK Continental Shelf (UKCS).^[17] In 2008, the combined production of oil and gas was 1 billion BOE (549 million barrels (87,300,000 m³) of oil and 68 billion cubic metres of gas). This represented a fall of 5% compared with 2007 (6% oil and 3% gas), a slight improvement on the decline rate in 2002-2007 which averaged 7.5% per annum.^[18]

Role in supplying energy to the UK[]

As of 2008, just over three-quarters of the UK's primary energy demand was met by oil and gas. In 2008, oil produced on the UKCS satisfied almost all domestic consumption (97%) while gas produced in the UK met about three quarters of demand.^[12] In 2020, it is estimated that 70% of primary energy consumed in the UK will still come from oil and gas, even upon achievement of the government's target to source 20% of energy from renewable sources.^[18] This will be a combination of oil and gas produced domestically and imports. The UKCS has the potential to satisfy 40% of the UK's oil and gas demand in 2020, if investment is sustained.^[18]

Associated expenditure[]

Over the last four decades, a total of £210 billion (2008 money, equivalent to £282 billion in 2019)^[13] has been invested in developing new resources.^[18] In 2008, this figure was £4.8 billion,^[12] a 20% decrease since 2006. An additional £147 billion (2008 money)^[12] has been spent on producing the oil and gas and in 2008, operating costs were £6.8 billion (equivalent to £10 billion in 2019),^[13] an increase on 2007. The development cost of some of the early UK North Sea oil fields are shown in the table:^[19]

Development costs of early North Sea oil fields

Field	Production start	Development cost $ million	Peak production 1,000 barrels/day	$/barrel/day
Argyll	1975	70	70	1,000
Forties	1975	1,460	500	2,900
Auk	1975	135	80	1,700
Piper	1976	750	300	2,500
Montrose	1976	250	60	4,100
Beryl	1976	800	100	8,000
Brent	1976	3,600	460	8,000
Claymore	1977	540	170	3,200
Thistle	1977	1,000	200	5,000
Dunlin	1978	960	150	6,400
Ninian	1978	2,100	360	5,800
Heather	1978	450	50	9,000
Cormorant	1979	740	60	12,300
Tartan	1979	430	85	5,100
Buchan	1979	200	50	4,000
Murchison	1980	725	120	6,000
Total		14,210	2,815	5,000 (mean)

Tax contribution[]

Oil and gas production from the UKCS has contributed £271 billion (2008 money) in tax revenues over the last forty years.^[20] In 2008, tax rates on UKCS production ranged from 50 to 75%, depending on the field. The industry paid £12.9 billion^[20] in corporate taxes in 2008-9, the largest since the mid-1980s, because of high oil and gas prices. This represented 28% of total corporation tax paid in the UK.^[20] It is expected that tax revenues from production will fall to £6.9 billion in 2009-10^[20] based on an oil price of $47 per barrel, providing 20% of total corporation taxes. In addition to production taxes, the supply chain contributes another £5-6 billion per year in corporation and payroll taxes.^[18]

Employment[]

In 2008, some 450,000 jobs throughout the United Kingdom were supported by the servicing of activity on the UKCS and in the export of oil and gas related goods and services around the world.^[18] The exploration for and extraction of oil and gas from the UKCS accounted for around 350,000 of these; this comprised 34,000 directly employed by oil and gas companies and their major contractors, plus 230,000 within the wider supply chain. Another 89,000 jobs were supported by the economic activity induced by employees' spending. In addition, a thriving exports business is estimated to support a further 100,000 jobs.^[18] In January 2013 an Industry Job Site www.oilandgaspeople.com predicted that over 50,000 new jobs would be created within the industry that year as new technology makes marginal fields more viable.

Whilst the oil and gas industry provides work across the whole of the UK, Scotland benefits the most, with around 195,000 jobs, or 44% of the total. 21% of the workforce is from South East England, 15% from the North of England, and 12% from the East of England . Each £billion spent on the UKCS supports approximately 20,000 jobs.^[18]

Companies database[]

Set up in 1996, First Point Assessment Limited (FPAL)^[21] is the key tool used by oil and gas companies to identify and select current and potential suppliers when awarding contracts or purchase orders. The organisation operates as a neutral, industry-steered organisation, improving efficiency in the oil and gas supply chain. FPAL currently matches the needs of over 70 purchasing organisations with the capabilities of over 2,400 suppliers.

Tax contribution[]

Jobs in the UK oil and gas industry are highly skilled and well rewarded. 2008 salaries averaged circa £50,000 a year across a broad sample of supply chain companies, with the Exchequer benefiting by £19,500 per head in payroll taxes.^[18]

Skills and training[]

Set up in 2007, OPITO (Offshore Petroleum Industry Training Organisation)^[22] supports the efforts and resources that employers throughout the UK are currently investing in workforce development to ensure that the UKCS remains at the forefront of offshore expertise and technology. The organisation allows the industry to consolidate and improve its work in generating and developing the talent needed to sustain the long-term future of the UKCS and export learning internationally. OPITO works with schools, colleges and universities on a shared agenda of encouraging greater uptake of mathematics, science and engineering subjects. The organisation also supports the development of safety, technical and leadership skills within the industry in response to identified need. Training standards and quality assurance on training delivery both here and around the world are also being advanced through OPITO.

Technology and innovation[]

The operating environment in the waters around the UK is harsh and demanding. To overcome the challenges of recovering oil and gas from increasingly difficult reservoirs and deeper waters, the North Sea has developed a position at the forefront of offshore engineering, particularly in subsea technology. Many new oil and gas fields in the UK are small, technically complex and economically marginal. Often recovery from these fields is achieved by subsea developments tied back to existing installations and infrastructure, over varying distances measured in tens of kilometres. Innovative technology is also a critical component in the recovery of reserves from high pressure, high temperature (HPHT), heavy crude oil and deep water fields.

Exports[]

UK exports of oil-related goods and services have been estimated at more than 10 billion a year in value.^[18] This amount is a reflection of how well established the UK's supply chain is internationally. The competence of its people and the quality of its technology, particularly subset, are very much in demand in oil and gas provinces around the world.

Industry collaboration[]

The Industry's Technology Facilitator (ITF)^[23] identifies needs and facilitates the development of new technology to meet those needs through joint industry projects with up to 100% funding available for promising solutions. Since its creation ten years ago, ITF has helped oil and gas producers, service companies and technology developers to work collaboratively, developing 137 technology projects.

Health and safety[]

Background[]

The safety, health and welfare of offshore workers in the United Kingdom’s sector of the North Sea had been secured since 1971 by the Mineral Workings (Offshore Installations) Act 1971 and its subsidiary legislation.^[24] The Health and Safety at Work, etc. Act 1974 was administered on behalf of the Health and Safety Executive by the Petroleum Engineering Division of the Department of Energy.^[24]

Following the Piper Alpha disaster in 1988, the 106 recommendations of the Public Inquiry by Lord Cullen proposed fundamental changes to the regulation of offshore safety.^[25] These included the preparation and publication of Safety Cases, the strengthening of Safety Management Systems, independent assessment and survey, legislative changes and changing the regulatory body.^[26] Responsibility for offshore safety was transferred in 1991 from the Department of Energy to the Health and Safety Executive. The Offshore Safety Act 1992 legally implemented many of the Inquiry recommendations.^[26]

Regulator[]

The Health & Safety Executive (HSE)^[27] is the UK offshore oil and gas industry regulator and is organised into a number of directorates. The Hazardous Installations Directorate (HID) is the operational arm responsible for major hazards. A dedicated Offshore Division within HID is responsible for the enforcement of regulations in the offshore oil and gas industry.

Safety vision[]

Set up 1997, Step Change in Safety^[28] is the UK based cross-industry partnership with the remit to make the UK the safest oil and gas exploration and production province in the world. Its initial aim was to reduce the injury rate by 50%, which was achieved in 2003. Step Change in Safety's work is now focused in three areas: recognising hazards and reducing risk, personal ownership for safety and asset integrity. Communication between Step Change in Safety and the industry is through elected safety representatives, offshore installation managers and supervisors, safety professionals and company focal points. These individuals are consulted on what needs to be done and are charged with ensuring that the Step Change programme is implemented.

Statistics[]

HSE publishes fatal, major and over-three-day injuries as well as dangerous occurrences under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR).

RIDDOR does not apply to events that are reportable under the ;^[29] the ; and the Merchant Shipping Act 1988, and orders and regulations made thereunder – therefore, industry-related aviation and marine accidents which are covered by any of the above regulations are not included in the RIDDOR-derived statistics. In 2007/8 and 2008/9, there were no fatalities, compared with two in 2006/7 and 2005/6. During 2008/9, 30 major injuries were reported compared with 44 in 2007/8. This resulted in a combined fatal and major injury rate of 106 per 100,000 workers, down from 156 and 146 in 2007/8 and 2006/7 respectively. The number of over-three-day injuries has fallen this year by 5% to 140, representing an over-three-day injury rate of 496 per 100,000 workers.

Asset integrity[]

Asset integrity is the ability of an oil and gas asset to perform its required function effectively and efficiently whilst protecting health, safety and the environment. Asset integrity management is the means of ensuring that the people, systems, processes and resources that deliver integrity are in place, in use and will perform when required over the whole lifecycle of the asset. In 2004, the HSE highlighted the infrastructure on which work was required to maintain integrity and £4 billion was subsequently spent in the area of asset maintenance.^{[citation needed]} In 2009, the HSE confirmed that the key issues identified earlier had been resolved. Specific initiatives now encourage industry-wide engagement and continued investment in asset integrity. On a global level, asset integrity continues to be ranked amongst the oil and gas industry's biggest challenges and main focus areas, In spite of this, recent research by Oil and Gas Fundamentals has indicated that understanding of the subject inside the industry is still not where it needs to be.^[30]

Aviation safety[]

Aberdeen is the busiest heliport in the UK with 47,000 flights in 2008 transporting workers to and from offshore installations on the UKCS.^[31] Between 1977 and the end of 2006, just over 56 million passengers were transported by helicopter from all UK heliports to and from offshore installations on the UKCS. More than 6.5 million sectors were flown, taking nearly 3 million flying hours. During this time, seven fatal helicopter accidents claimed the lives of 94 offshore workers and flight crew.^[32] Government data for the period 1995 to 2004 show that with the exception of rail, the yearly passenger casualty rate for offshore helicopter travel is much better than most forms of land-based passenger transport and of a similar order to travelling by car.^[32] Offshore helicopter passengers are equipped for their journey with survival suits and other aids and undergo survival training.

Other mariners' safety[]

The Fisheries Legacy Trust Company's (FLTC)^[33] main function is to help keep fishermen safe in UK waters. It does this by building a trust fund (based on payments from oil and gas producers) which can be used to maintain comprehensive, up-to-date information on all seabed hazards related to oil and gas activities for as long as they remain, and to make this data available for use by fishing vessel plotters found on board in wheelhouses all around the UK coastline.

Environment[]

The industry's vision which guides the environmental management process is to understand and manage environmental risks to achieve demonstrable no harm levels by 2020.

Atmospheric emissions[]

UK oil and gas installations participate in the European Union Emission Trading Scheme (EU ETS) which aims to reduce emissions of carbon dioxide and combat the threat of climate change. Carbon dioxide is released into the atmosphere in three ways during production operations: combustion of fuel for power generation, flaring (a process used to burn off unusable waste gas or flammable gas and liquids for safety reasons) and direct process emissions. Over the years, carbon dioxide emissions in tonnes have steadily decreased with a 10% reduction in 2007 compared with 2000.^[34] In 2007, 17 million tonnes of carbon dioxide were emitted.

Flaring[]

Open gas flares for well tests are not permitted in the UK. Release of unburned gas is also not permitted by the Environment Agency/SEPA.^[35] The low temperature of combustion in open flaring, and incomplete mixing of oxygen means that carbon in methane may not be burned, leading to a sooty smoke, and potential VOC/BTEX contamination. Radon gas exists in very low concentrations in shale gas and in North Sea gas, but the levels predicted fall below any level of concern (300 microseiverts p.a.).

In exploration wells, where flow rates are expected to be 10 tonnes of gas per day, testing is licensed by the Environment Agency to 30 days, extendable to 90 days. Enclosed burners are available that will ensure low levels of light pollution, little noise, and 99+% combustion and destruction of VOCs/BTEX, at around 800 C.^[36]

Well testing is used to estimate the productivity of the well. In testing a production well, the test can be made by flowing into the production pipeline. This means that no gases would be lost, and flaring would not be necessary. This is known as a 'green completion'.

Marine discharges[]

Discharges into the sea can occur either through accidental release (e.g. oil spill) or in the course of normal operations. In 2007, 59 tonnes of oil in total^[34] was accidentally released into the marine environment, which, in open sea, will have a negligible environmental impact.

Waste[]

Types of waste generated offshore vary and include drill cuttings and powder, recovered oil, crude contaminated material, chemicals, drums, containers, sludges, tank washings, scrap metal and segregated recyclables. The majority of wastes produced offshore are transferred onshore where the main routes of disposal are landfill, incineration, recycling and reuse. Drill cuttings are also re-injected into wells offshore.

Future of the UKCS[]

Production[]

39 billion barrels (6.2×10⁹ m³) of oil and gas have been produced on the UKCS and up to 25 billion barrels (4.0×10⁹ m³) are left.^[18] Therefore, the UK could still be producing significant amounts of oil and gas for decades to come. It is estimated that in 2020, UK production could still meet 40%^[18] of the nation's demand for oil and gas.

Decommissioning[]

The principal legislation for decommissioning offshore infrastructure when production ceases is OSPAR Decision 98/3 on Disposal of Disused Offshore Installations. Under OSPAR legislation, only installations that fulfil certain criteria (on the grounds of safety and/or technical limitations) are eligible for derogation (that is, leaving the structure, or part of, in place on the seabed). All other installations must be totally removed from the seabed. During the next two decades, the industry will begin to decommission many of the installations that have been producing oil and gas for the past forty years. There are approximately 470 installations to be decommissioned, including very large ones with concrete sub-structures, small, large and very large steel platforms, and subsea and floating equipment, the vast majority of which will have to be totally removed to the shore for dismantling and disposal. Some 10,000 kilometres of pipelines, 15 onshore terminals and around 5,000 wells are also part of the infrastructure planned to be gradually phased out, although some, or parts, of the onshore terminals will remain because they are import points for gas pipelines from Norway and the Netherlands. Decommissioning is a complex process, representing a considerable challenge on many fronts and encompassing technical, economic, environmental, health and safety issues. Expenditure is therefore projected to be £19 billion by 2030, rising to £23 billion by 2040, for existing facilities. New facilities could add another £2-3 billion to the decommissioning cost, raising the total to circa £25 billion.^[18]

Technology[]

Exports

The export of oilfield goods and services developed by the UK over forty years are in demand around the world. In 2008, approximately £5 billion^[18] was earned through such exports. As energy demand around the world grows, so too will the need for technology and expertise required to satisfy it.

Transfer to other industries

Marine technology, skills and expertise pioneered in oil and gas are important in the design, installation and maintenance of offshore wind turbines and hence have found roles in the continuing evolution of renewable energy. The industry has led the way in the development of drilling, remotely operated vehicles (ROVs) and geophysical technology. All three areas of expertise are used by scientists and engineers elsewhere, whether examining Antarctic ice core samples, raising sunken ship wrecks or studying the plate tectonics of the ocean floor.

Carbon capture and storage (CCS)

To prevent carbon dioxide building up in the atmosphere it has been theorised that it can be captured and stored, such as the working CCS at the Sleipner field offshore Norway, among other examples. CCS is undertaken by combining three distinct processes: capturing the carbon dioxide at a power station or other major industrial plant, transporting it by pipeline or by tanker, and then storing it in geological formations. Some of the best natural repositories are depleted oil and gas fields, such as those in the North Sea. The oil and gas industry's knowledge of undersea geology, reservoir management and pipeline transport will play an important role in making this technology work effectively.

Timeline of the UK oil and gas industry[]

The following list is a selection of significant events in the history of the oil and gas sector in the United Kingdom.^{[1][37][38][39][40]}

Timeline of the UK oil and gas industry

Year	Event
1694	Patent No.405 granted for a process to extract pitch, tar and oil from oil stone
1716	Patent to extract pitch, tar and oil from stone extracted from Shropshire coalmines
1786	A spring of bitumen found in a tunnel at Ironbridge, Shropshire
1812	Gas Light and Coke Company established
1836	Gas found when digging a well for water at Hawkhurst Sussex, gas ignited and killed two men
1843	Manchester Corporation becomes  the first municipal gas undertaking
1847	Gasworks Clauses Act 1847 defines rights and obligations of undertakings
1848	James Oakes and James Young formed a partnership to produce paraffin oil for lamps from crude oil in mine workings
1859	Sales of Gas Act 1859
1861	Oil shipped from Pennsylvania to London, the first recorded transnational shipment
1862	Petroleum Act 1862  to ensure the safe-keeping of petroleum and its products
1868	Petroleum Act 1868 extends the 1862 Act to  include labelling and flammability tests
1870	Beckton gas works opened, eventually the largest in the world
1871	Archibald Cochrane patented a method to extract hydrocarbons from pit  coal
1871	Petroleum Act 1871 required Harbour Authorities to make bye-laws regulating the trade in petroleum, repealed 1862 and 1868 Petroleum Acts
1872	Culross Abbey lit by gas produced from tar
1879	Petroleum Act 1879 redefined petroleum flash point from 100 °F to 73 °F
1899	First edition of ‘The Petroleum Industrial Technical Review’ by the Petroleum Storage Tanks and Transportation Co. Ltd.
1918	Petroleum (Production) Act 1918, conferred on landowners the ownership of minerals on their land
1919	Britain’s fit oil discovery at Hardscroft, Derbyshire, produced 29,000 barrels between 1919  and 1945
1926	Petroleum Act 1926  updated 1871 and 1879  Petroleum Acts to reflect changes of use of petroleum
1928	London Research Centre opened to study manufacture and distribution of gas
1928	Petroleum (Consolidation) Act 1928, and Petroleum (Amendment) Act 1928 petroleum-spirit not to be kept without a licence, transport of petroleum,  keeping, use and supply of petroleum-spirit
1934	Petroleum (Production) Act 1934, vested in the Crown the petroleum and natural gas within Great Britain and made provision for  the searching and getting of petroleum and natural gas
1936	First deep oil well at Portsdown Hampshire by D’Arcy Exploration Co. Ltd.
1936	Petroleum (Transfer of Licences) Act 1936
1937	Gas found at Eskdale Yorkshire by D’Arcy Exploration Co. Ltd.
1937	Gas found at Dalkeith Scotland by D’Arcy Exploration Co. Ltd.
1939	Oil found at Formby Lancashire
1939	Oil found at Earking, Nottinghamshire by D’Arcy Exploration Co. Ltd.
1939	Petroleum Board established to manage petroleum supplies under war conditions
1941	Oil found at Dukes Wood, Nottinghamshire by D’Arcy Exploration Co. Ltd.
1941	Oil found at Kelham Hills, Nottinghamshire by D’Arcy Exploration Co. Ltd.
1943	Oil found at Caunton Nottinghamshire by D’Arcy Exploration Co. Ltd.
1943	Oil found at Nocton, Lincolnshire by D’Arcy Exploration Co. Ltd.
1948	Gas Act 1948, Nationalised the UK gas industry with effect from 1 May 1949, established 12 Area Board and the Gas Council
1956	Nationalisation of the Suez Canal by Egypt, Suez crisis
1959	Oil discovered at Kimmeridge, Dorset by BP
1959	First trans-national shipment of Liquefied Natural Gas, landed at Canvey Island from USA
1964	Oil discovered at Wareham, Dorset by BP
1964	First shipment of Liquefied Natural Gas, landed at Canvey Island from Algeria
1964	Continental Shelf Act 1964, made provision for the exploration and exploitation of the continental shelf, enacted  provisions of the 1958 Geneva   Convention on the High Seas
1965	Gas Act 1965, the Gas Council was given powers to manufacture or acquire gas and supply gas in bulk to Area Boards
1965	Gas found at Lockton North Yorkshire by Home Oil
1965	Peak number of service station 41,000 in the UK
1965	Gas discovered at West Sole field by BP
1965	Sea Gem disaster 13 fatalities
1967	First North Sea Gas arrived onshore at Easington terminal from West Sole field
1967	Torrey Canyon tanker disaster 60,000 tons of oil released
1968	Bacton gas terminal inaugurated
1968	Diesel and Electric trains supersede steam trains in UK
1968	Gas and Electricity Act 1968 extended the powers of the Gas Council to borrow money
1970	First oil discovered in the UK sector of the North Sea, Forties Field
1971	Lockton gas field comes onstream
1971	Mineral Workings (Offshore Installations) Act 1971,  provided for the safety, health and welfare of persons on installations concerned with the underwater exploitation and exploration of  oil and gas
1972	Gas Act 1972, merged the Gas Boards, abolished the Gas Council, established the British Gas Corporation
1972	Theddlethorpe terminal opened, gas feed from Viking field
1973	Gas Council discover Wytch Farm oil field
1973	The October or Yom Kippur war, Arab oil states reduce production and embargo supplies, OPEC set high prices precipitating an economic crisis
1974	Gas discovered at Morecambe Bay
1975	Petroleum Revenue Tax introduced by Oil Taxation Act 1975
1975	First Oil production from the North Sea, Argyll Field by BP
1975	Offshore Petroleum Development (Scotland) Act 1975, the acquisition by the Secretary of State of land in Scotland for the exploration and exploitation of offshore petroleum
1975	Petroleum and Submarine Pipe-lines Act 1975, established the British National Oil Corporation; provisions about licences to search for and get petroleum and about submarine pipe-lines and refineries
1976	Shell Heysham oil refinery closed
1978	St. Fergus gas terminal opened
1979	Shah of Iran overthrown, the second 1970s oil crisis
1980	Petroleum Revenue Tax Act 1980, new provisions on petroleum revenue tax
1981	BP announces the closure of BP Kent refinery
1981	Gas field discover at Hatfield Moors, Yorkshire
1981	Oil field discovered at Humbly Grove, Hampshire by Carless Capel
1981	UK became a net exporter of oil
1981	Burmah Ellesmere port refinery closed
1982	Oil and Gas (Enterprise) Act 1982
1983	Petroleum Royalties (Relief) Act 1983, conferred on petroleum production licence holders an exemption from royalties
1983	ExxonMobil Milford Haven refinery closed
1984	Shell Teesport Refinery closed
1984	Control of Industrial Major Accident Hazards Regulations 1984 introduced
1985	Gas field at Kirby Misperton discovered by Taylor Woodrow
1985	Oil and Pipelines Act 1985 abolishes the British National Oil Corporation, establishes the Oil and Pipelines Agency
1985	UK oil exports peaked
1986	Advance Petroleum Revenue Tax Act 1986, repayment of advance petroleum revenue tax
1986	Gas Act 1986, privatised the gas industry, established British Gas and Ofgas as regulator
1986	Fall in oil price
1987	Explosion at BP Refinery Grangemouth, one fatality
1987	Government shares in BP sold
1987	Petroleum Act 1987, provisions for the abandonment of offshore installations and submarine pipe-lines; amended the Petroleum (Production) Act 1934; amended the Petroleum and Submarine Pipe-lines Act 1975
1988	Piper Alpha disaster, 167 fatalities
1989	Petroleum Royalties (Relief) and Continental Shelf Act 1989, conferred on holders of petroleum licences an exemption from petroleum royalties from onshore and offshore fields and to conferred power to amend the Continental Shelf (Designation of Additional Areas) Order 1974
1990	Liberalisation of the gas market ‘the dash for gas’ power generators allowed to burn gas
1992	Offshore Safety Act 1992 comes into force
1994	Explosion and Fire at Texaco Milford Haven refinery
1995	Shell intended to sink redundant Brent Spar in deep water, Greenpeace occupy the Spar
1995	Gas Act 1995, amended parts of the Gas Act 1986;  made provision for owners of certain gas processing facilities to make them available to other persons
1997	UK became a net exporter of gas
1998	Petroleum Act 1998, consolidated enactments about petroleum, offshore installations and submarine pipelines
1998	Interconnector Bacton to Zeebrugge commissioned
1999	Peak of UK oil production
1999	Shell close Shell Haven oil refinery
1999	Control of Major Accident Hazards (COMAH) Regulations came into force
2004	UK became a net importer of gas
2005	Buncefield explosions and fire at oil terminal in Hertfordshire
2006	BBL pipeline (Balgzand - Bacton Line) commissioned
2007	Oil & Gas UK established
2007	Peak of UK petrol sales
2011	Explosion and Fire at Chevron Pembroke refinery
2011	Petroplus Teesside refinery closed
2011	Peak of UK diesel sales
2012	Closure of Petroplus Coryton oil refinery
2014	Nynas Dundee refinery closes
2015	Control of Major Accident Hazards (COMAH) Regulations 2015 replace COMAH 1999
2018	Closure of Theddlethorpe gas terminal

See also[]

• North Sea oil
• List of oil and gas fields of the North Sea
• Onshore oil and gas fields in the United Kingdom

• Oil terminals in the United Kingdom

• Petroleum refining in the United Kingdom

• Hydraulic fracturing in the United Kingdom
• Shale gas in the United Kingdom
• English land law

References[]

Further reading[]

• Falkus, M. E. “The British Gas Industry before 1850.” Economic History Review 20#3 1967, pp. 494–508. online
• Fouquet, Roger, and Peter JG Pearson. "A thousand years of energy use in the United Kingdom." The Energy Journal 19.4 (1998) online.
• Fouquet, Roger, and Peter J.G. Pearson. "Seven centuries of energy services: The price and use of light in the United Kingdom (1300-2000)." The energy journal 27.1 (2006) online.
• Goodall, Francis. "Appliance trading activities of British gas utilities, 1875‐1935 1." Economic History Review 46.3 (1993): 543-557 online.
• Kander, Astrid, Paolo Malanima, and Paul Warde. Power to the people: energy in Europe over the last five centuries (Princeton University Press, 2015).
• Matthews, Derek. "Laissez-faire and the London gas industry in the nineteenth century: another look." Economic History Review (1986): 244-263 online.
• Matthews, Derek. "The technical transformation of the late nineteenth-century gas industry." Journal of Economic History (1987): 967-980 online.
• Millward, Robert, and Robert Ward. "The costs of public and private gas enterprises in late 19th century Britain." Oxford Economic Papers 39.4 (1987): 719-737. online
• Shepherd, Mike. Oil Strike North Sea: A first-hand history of North Sea oil. Luath Press. 2015.
• Thorsheim, Peter. "The Paradox of Smokeless Fuels: Gas, Coke and the Environment in Britain, 1813-1949." Environment and History 8.4 (2002): 381-401. online
• Tomory, Leslie. "The environmental history of the early British gas industry, 1812–1830." Environmental History 17.1 (2012): 29-54 online.

External links[]

• The Fundamentals of Asset Integrity, Oil and Gas Fundamentals