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2012 UK energy stats show production down 10.7%, consumption up 1.7%

13 August 2013

The Department of Energy and Climate Change (DECC) has released four key publications: the
Digest of United Kingdom Energy Statistics 2013, UK Energy in Brief, Energy Flow Chart, and Energy Consumption in the United Kingdom, providing detailed analysis of production, transformation and consumption of energy in 2012.

Key points:
* Primary energy production fell by 10.7%, on a year earlier, with further declines in oil and gas production.
* Final energy consumption rose by 1.7%, reflecting the colder weather in 2012. On a temperature adjusted basis, energy consumption was down 0.7% continuing the downward trend of the last eight years.
* Electricity generated from renewable sources in the UK in 2012 increased by 19% on a year earlier, and accounted for 11.3% of total UK electricity generation, up from 9.4% in 2011. Total renewables, as measured by the 2009 EU Renewables Directive, accounted for 4.1% of energy consumption in 2012, up from 3.8% in 2011.
* With high gas prices, electricity generation shifted further from gas to coal in 2012, with the highest share of generation in 2012 coming from coal (39%).

Main energy production and trade statistics:
* Primary energy production fell by a further 10.7% in 2012, following the record 13.2% into 2011. There were falls in both oil and gas production caused by long term decline and maintenance activity on the UK Continental Shelf. Production has now fallen in each year since 1999, and is now less than half its 1999 levels, an average annual rate of decline of 7.1%.
* Gross natural gas production fell 14% in 2012; driven in part by the Elgin gas leak. Gas production has fallen by 64% since its peak in 2000.
* Crude oil (including NGLs) production in 2012 was 14% lower than in 2011 at 45 million tonnes. Production has fallen by 67% since 1999.
* Coal production was down by 8.5% in 2012 compared to 2011. Imports of coal were higher compared to 2011 (by 37.8%).
* Energy imports were at record levels in 2012, up 6.9% on 2011 levels.
- For crude oil, the key source was Norway which accounted for 46% of imports, with a large growth in imports from African OPEC countries.
- For gas the key source was also Norway, which accounted for 55% of UK imports. LNG accounted for 28% of gas imports, down from 47% in 2011; with 98% of these imports from Qatar.
- For petroleum products the UK sources its product widely, with a range of European countries supplying diesel road fuel and aviation fuel mainly being sourced from Asia.
- For coal the key source was Russia accounting for 40% of UK imports, followed by Columbia and the US which accounted for 26 and 24% respectively.
* The UK remained a net importer of energy, with an increased dependency level of 43%; this continues the trend from 2004 when the UK once again became a net importer of fuel. The UK imported more coal, manufactured fuels, crude oil, electricity and gas than it exported; however the UK remained a net exporter of petroleum products, although net exports were 1.1 million tonnes in 2012, compared to 5.1 million tonnes in 2011.

Main energy consumption statistics:
* UK primary energy consumption in 2012 increased by 2.1%, largely due to
the colder weather in 2012. On a temperature adjusted basis, consumption was
down 0.6% continuing the downward trend of the last seven years.
* Overall gas demand decreased by 6%. Gas demand for electricity generation decreased by 30% and gas’s share of the UK’s generation of electricity was 28%, down from 40% last year. Domestic demand was up by 16%.
* Total oil consumption in the UK was broadly stable, falling by 2% when compared with 2011. Over 75% of oil is consumed in the transport sector, which showed little change in overall consumption from 2011.
* Consumption of diesel road fuel exceeded the consumption of motor spirit in 2012 by over 8 million tonnes due in part to increased substitution of diesel for motor spirit use in the UK’s car fleet. Up until 2005, motor spirit exceeded diesel road fuel sales. Petrol consumption has fallen by 4.4% per annum in the past 10 years, whilst diesel use has increased by 2.4% per annum, over the same period.
* Coal consumption increased by 24.5% in 2012. There was a 31.2% increase in consumption by major power producers (consumers of 86% of total coal demand). Coal accounted for 39% of the electricity generated in the UK in 2012, up from 29% in 2011. The domestic sector accounted for only 1.1% of total coal consumption.
* Energy consumption by final users at 148.2 million tonnes of oil equivalent increased by 1.7% in 2012. Consumption in the domestic sector was up 11.0%, due to increased gas use for heating, with service sector use up by 2.7%. There was reduced consumption from industry, transport and non-energy use, which were down 2.9, 1.4 and 10.0% respectively. Average temperatures in 2012 were 1.0 degrees cooler than in 2011. On a temperature adjusted basis final energy consumption was down by 0.9% continuing the downward trend of the last eight years.
* Refinery production decreased by 8% on 2011 and 20% on 2000. The closure of the Coryton refinery in the summer of 2012 contributed to the decrease in production. As a result imports of petroleum product imports have increased by 15% and exports have decreased by 3%. Petrol accounts for nearly a third of exports.

Main electricity generation and supply statistics:
* With high gas prices, the commercial attractiveness of gas for electricity generation weakened further in 2012, with generation switching to coal as a result. Gas’s share of electricity generation fell by 12 percentage points, with coal’s increasing by nine. Meanwhile, nuclear’s share of electricity generation was unchanged, despite a slight increase in generation. 
Electricity generation by fuel, 2012: Coal 39%, Gas 28%, Nuclear 19%, Renewables 11.3%, Other 2.5%
* Electricity generated from renewable sources in the UK in 2012 increased by 19% on a year earlier, and accounted for 11.3% of total UK electricity generation, up from 9.4% in 2011. Offshore wind generation increased by 46%, with a load factor of 33.7% (greater than the gas load factor of 30.4%).
* In 2012, the proportion of UK electricity generated from renewables was 11.3%. On the basis of the policy measurement of the contribution of renewables eligible under the Renewables Obligation to UK electricity sales, 2012 showed a 1.2% point increase, with the percentage increasing from 9.4% in 2011
to reach 10.6% in 2012. Installed electrical generating capacity of renewable sources rose by 27% in 2012, mainly as a result of a 27% increase in onshore wind capacity, 63% increase in offshore wind capacity, and solar photovoltaic capacity increasing by 71% (due to high uptake of Feed in Tariffs).
* There was a 0.6% increase in the total supply of electricity in the UK in 2012, to 375.9 TWh. Indigenous electricity supply fell by 1.0%, but net imports of electricity almost doubled, to 12.0 TWh, as imports rose and exports fell.
* Final consumption of electricity was broadly unchanged at 317.6 TWh, the lowest level since 1998.
* The domestic sector was the largest electricity consumer in 2012 (114.7 TWh), while the industrial sector consumed 97.8 TWh, and the service sector consumed 101.0 TWh. Industrial consumption decreased by 4.4%, while domestic consumption rose by 2.8%.

Other energy statistics:
* Total renewables, as measured by the 2009 EU Renewables Directive, accounted for 4.1% of energy consumption in 2012 up from 3.8% in 2011.
* In 2012, Combined Heat and Power (CHP) capacity stood at 6,136 MWe, an increase of 2.8% on 2011.
* In 2012, the energy industries accounted for 3.5% of GDP. The increase in residential gas use, due to the cooler weather in 2012, combined with fuel switching away from gas to coal for electricity generation, provisionally increased emissions of carbon dioxide by 4% in 2012.

Energy consumption in the United Kingdom:
* Final energy consumption, excluding non-energy use, rose by 3.3 million tonnes of oil equivalent between 2011 and 2012 – an increase of 2.4%. 
* Energy consumption in 2012 was 6.7 million tonnes lower than in 1990 – a decrease of 4.5%. 
* In 2012, energy consumption in the industrial sector decreased 3% since 2011, with the iron and steel sector showing a 5% decrease to 1.2 million tonnes of oil equivalent. The largest energy consuming single sub-sector in the industrial sector was chemicals, which accounted for 16% of all industrial
energy consumption. Energy consumption per unit of output fell by 47% in the chemicals sector between 1990 and 2012, while there was a fall of 12% in the same measure for the iron and steel sector; for all industries there was a fall of 33%.
* Energy consumption in the transport sector fell by 1% between 2011 and 2012. Transport energy consumption rose 9% (4.6 million tonnes of oil equivalent) between 1990 and 2012. Within this, the largest increase occurred in the air transport sector, where consumption rose by 69% – with this sector
accounting for 23% of total transport consumption in 2012. Over the same period, road transport fuel rose by 2% and rail transport use fell by 7%.
* In 2012, domestic energy consumption was 11% higher than consumption in 2011, with consumption retuning to 2009 levels. The intermediate years had unusual weather spells (the high levels of consumption in 2010 were largely driven by colder temperatures and the lower levels of consumption in 2011 were due to a warmer than usual year).
* The 6% rise since 1990 is set in the context of an increase of 20% in the number of UK households and a 12% increase in the UK population. At a per household level, energy consumption has fallen by 12% since 1990.
* In 2012, space heating accounted for 66% of all energy consumed in the domestic sector, water heating a further 17%, with lighting and appliances and cooking responsible for 15 and 3%.
* In the service sector, energy consumption in the private commercial sector increased by 12% between 1990 and 2012, in the public sector it fell by 13% and by 30% in the agriculture sector. Over the same period, output, measured as the contribution made to the UK economy, increased by 79% in
the private sector and increased by 45% in the public sector, in real terms. In 2012, space heating accounted for 48% of energy consumption in the services sector, and lighting accounted for a further 19%. The retail sub-sector accounts for 20% of energy use by service sector organisations.

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