BDO, one of the UK’s leading accountancy and business advisory firms, provides services to a broad range of clients across different sectors, ranging from small enterprises and individuals to complex multinational organisations.
With a rich history of providing tailored services, BDO is renowned for its commitment to delivering high-quality, personalised solutions to its clients.
In line with its objective to help businesses navigate their way through an ever-evolving landscape, BDO has published its UK Oil & Gas Report 2023. This comprehensive report offers a deep dive into the latest trends, challenges and opportunities in the UK oil and gas sector, an industry pivotal to the country’s economy.
A changing climate
In the last decade, the UK has undergone a significant energy transformation – reducing power generation from fossil fuels such as coal in favour of lower-carbon and renewable sources that accounted for 21% of the UK’s primary energy supply in 2022.
Despite the reduction in coal and move to renewables, other fossil fuels such as oil and gas contribution to the energy mix has remained unchanged over the past decade at just over 70%.
The UK’s energy production had been falling since 2018 but surged in 2022 driven by rises in gas, nuclear, and renewables output. Despite the UK’s commitment to achieving Net-Zero by 2050, the oil and gas sector remains the most significant contributor to the UK’s energy mix, accounting for 76% of the primary energy supply in 2022 and almost 83% in Q1 2023.
Gareth Lynton Jones, Advisory Partner at BDO, said: “The move towards net-zero is one of necessity for the country and the planet, but we must accept that hydrocarbons are likely to remain a crucial part of the UK’s energy mix for many years to come as we move towards this goal.”
Key highlights from the report
The BDO UK Oil & Gas Report 2023 provides an extensive overview of the oil and gas industry in the UK, covering various aspects crucial to understanding the current state of the sector and where it is likely to move towards in the future.
Some of the key takeaways include:
1. Market dynamics and economic impact: Shedding light on the current market conditions, exploring factors that influence prices, production levels and the overall economic impact of the oil and gas industry on the UK.
2. Technological innovations: The role of technology in reshaping the oil and gas industry is paramount, from automation and digitalisation to advancements in exploration and extraction methods. Matt Crane, Head of Natural Resources at BDO said: “Automation and digitalisation are fundamental to the industry being able to attract the right kind of young, talented people that will ultimately secure the energy transition.”
3. Regulatory landscape: Staying abreast of the regulatory changes is vital for the oil and gas sector. The report covers the latest regulations, including environmental policies, safety standards, taxation and their implications on the industry.
4. Investment opportunities: The report highlights potential investment areas within the oil and gas sector, with a focus on exploration, production, and infrastructure projects.
5. Challenges and solutions: The industry faces several challenges, such as environmental concerns, geopolitical tensions and supply chain disruptions. Julia McCullagh, Tax Partner at BDO, said: “Recognising the importance of this sector now and in the future, it is important to make sure that we have in place a taxation regime that is sympathetic to these challenges while ensuring that necessary investment is not curtailed to the detriment of the UK.”
Why you should download the full report
The BDO UK Oil & Gas Report 2023 is a comprehensive resource for anyone involved in or interested in the UK oil and gas sector. Matt Crane commented again: “We are very proud of the considerable work that has gone into the production of this document and hope that it serves to inspire challenging debate across the sector.”
Additionally, by downloading the full report, you will also have access to:
- In-depth analysis of market trends and forecasts, helping you stay ahead of the curve.
- Expert insights into industry challenges and solutions, enabling you to make informed decisions.
- Case studies and real-world examples of industry best practices, providing you with valuable knowledge.
- Comprehensive data and statistics to inform your decision-making process.
How to Access the Full Report
To gain a deeper understanding of the UK oil and gas sector and to make informed decisions, download BDO’s UK Oil & Gas Report 2023. This invaluable resource provides insights, knowledge, and data that can help you navigate the complexities of the industry.