How the UK oil and gas industry works - an outline
The UK’s oil and gas industry is so important, and delivers many benefits to our day-to-day lives, as well as to businesses throughout the country and the world. It is often taken for granted, but it is a key contributor to the economy, the jobs market and our ever-growing energy requirements.
The UK is lucky to have such a wealth of natural resources to tap into. Underneath the seas surrounding our little island, there are huge reserves of oil and gas, which have helped to build a prosperous offshore market. It also means that the UK is a global leader in the industry, able to provide to both national needs, as well as export resources.
Current operations
Offshore exploration is an ongoing operation that requires precision and vast experience. The UK is known for its innovation within the oil and gas industry, finding new ways to access the wealth of natural resources, without causing undue environmental concerns.
This means that companies and businesses working within the sector are continuously looking for ways to improve. Corrotherm has watched and witnessed the change in the materials used, with high-performance technical alloys being utilised in offshore projects that could change and secure the future of the oil and gas industry.
These new projects have a longer production lifespan and yield, which makes them more economical. However, it’s still important to find ways to maximise the life of existing projects, as well as explore innovative ways to develop into new areas. At the same time, those oil and gas facilities that are no longer used need to be safely decommissioned.
Key benefits
The oil and gas industry may be facing its challenges from new players in the energy market, but it is still absolutely key to the UK’s energy needs and economy. Since 1970, the industry has contributed £330 billion in production tax, and the UK-wide supply chain generates around £30 billion of revenue a year (including both domestic and export sales and services).
It’s not just about money, though, as the oil and gas industry contributes to the economy by providing secure jobs. In 2016, over 330,000 jobs in the UK were related to the oil and gas industry. This ranges from highly skilled, professional jobs, to essential manual work, but in any position the skills built up are ones that will be required long-term. The industry also invests in the next-generation of industry workers, recognising the importance of good training and development to ensure the continued innovation of the sector.
At present, the oil and gas industry contributes over two thirds of the UK’s total energy – it is used to provide domestic energy, drive the transport sector and power manufacturing and production.
It is a large and varied industry. Corrotherm, for example, supplies the kind of technically superior alloys that are required for complex offshore projects. We recently looked at INCOLOY alloy 825, for example, and how that is applied within the oil and gas industry. Find out more about the use of certain alloys in oil and gas production, on our dedicated page.
