UK energy deficit set to widen dramatically

From the late-Seventies until just a couple of years ago the UK enjoyed a significant energy surplus. The UK is now importing more than 20% of her energy needs. This state of affairs will exacerbate weakness in the economy and ensures recovery will take longer.

Britain's brief position as an energy exporting nation is no firmly in the past.  As can be seen from this chart (courtesy of www.theoildrum.com) the UK will now have to import ever increasing quantities of oil and gas each year. In 2000, the UK was able to export £6bn of oil but by 2006 £3.9bn worth of oil needed to imported. In fact by 2013 Britain will need to import as much as £100bn pa up from around £20bn today.


http://www.theoildrum.com/files/alistair_darling.png


This chart demonstrates just how bad our trade deficit has become over the past decade. Cumulatively reaching nearly £400bn the UK's trade deficit with the rest of the world is increasing by around £50bn pa. As can be seen by the previous graph energy demands alone will see this rise to over £100bn pa within a few years.

©In2perspective Limited