Overview of the UK’s onshore oil history, geology, and future potential.
The UK’s onshore oil and gas industry has a long history dating back to the 1850s. Oil was first discovered in Scotland in 1851, followed by natural gas in 1896 during the construction of Heathfield railway station in Sussex. These early discoveries set the foundation for a domestic energy industry.
Today, the UK has around 120 active sites and 250 operating wells, producing 20,000 to 25,000 barrels of oil equivalent per day. Estimates show potential reserves of 1,329 trillion cubic feet of shale gas in central England, compared to the UK's annual consumption of just over 3 tcf. This highlights the sector's importance for energy security.
Oil and natural gas formed millions of years ago from marine plants and animals that settled on the ocean floor, becoming kerogen. This material was buried and transformed into shale rock. In the UK, oil and gas either moved through porous rocks to form reservoirs or became trapped within shale.
While conventional hydrocarbons are found in areas like the North Sea, shale oil and gas are present in Northern and Central England. Shale gas extraction uses hydraulic fracturing due to its lower permeability, enhancing flow rates.
A 2013 British Geological Survey estimated the Bowland-Hodder shale formation contains around 1,329 trillion cubic feet (tcf) of gas. Recovering just 10% could meet the UK’s gas demand for 50 years. Recent exploration in Lancashire and Nottinghamshire showed high-quality shale gas, with forecasts in 2019 suggesting 100 shale sites could reduce imports, save 69 million tonnes of CO2, generate £600 million for communities, and add £33 billion to supply chains.
Natural gas is essential to the UK’s economy, providing 84% of heating and 40% of electricity. It is also a critical feedstock for industries like chemicals, food, and textiles. Many everyday products, from toothpaste to clothing, originate from petroleum.
With declining North Sea gas production, the UK is increasingly reliant on imports, projected to reach 70% by 2030. In 2018, most imports came from Norway (72%), followed by Belgium (7%) and the Netherlands (6%).
Natural gas helps balance the energy grid, supporting renewable sources. Though the government plans to reduce gas reliance, this will take years to implement.
Gas is crucial for fertiliser production through the Haber-Bosch process, impacting agriculture and food prices. A strong domestic shale gas supply could boost manufacturing, reduce import dependence, and ensure competitive energy prices, making the UK's economy more secure and resilient.
The year 1851
First production of onshore oil
Before traditional oil extraction began in the UK, oil shale was a significant resource. From 1851 to 1962, Scotland’s Midland Valley was home to an oil shale industry. The process involved heating shale rocks to extract oil, which marked the UK's early attempts at harnessing petroleum.
Kimmeridge Oil Field
Discovered in 1960, the Kimmeridge Oil Field is situated on the Jurassic Coast in Dorset. Known for its unique geological formations, the field uses traditional nodding donkey pumps to extract oil. This small-scale production offers insight into the UK's diverse oil resources.
Wytch Farm
Wytch Farm, located in Dorset, began oil production in 1979. It is now Europe's largest onshore oil field, using advanced techniques like horizontal drilling to access reserves. Despite its proximity to sensitive ecological areas, Wytch Farm remains a significant contributor to the UK's oil output.
North Sea Oil
The discovery of North Sea oil dramatically shifted the UK's energy landscape. By 1981, the UK had become self-sufficient, no longer reliant on foreign oil. This boom period fostered economic growth and positioned the UK as a key player in global oil markets.
Oil Imports & Exports
The UK remained a net oil exporter until 2004, when domestic production started to decline. As a result, the country began importing more oil than it exported. This shift highlighted the need for energy diversification and marked the end of the UK's oil independence.
Substantial energy and economic benefits of developing the UK shale gas sector.
1,329 Trillion cubic feet of Gas
The Bowland-Hodder shale formation in Northern and Central England is estimated to contain 1,329 trillion cubic feet (tcf) of gas.
10% = 50 Years U.K. Gas Demand
Recovering just 10% of this resource could meet the UK's gas demand for nearly 50 years.
Major Benefits for local and wider economy
This would generate £600 million in local community benefits and £33 billion in supply chain and industry spending.
Significant CO2 Savings
Saving 69 million tonnes of CO2 compared to importing the same amount of LNG.
