The United Kingdom is the largest consumer of natural gas in the European Union. Fortunately, it is also the third-largest producer. However, production has been falling since 2000-01 as reserves, largely concentrated in the North Sea, have begun to shrink. Encouragingly, operators have continued to invest in some new offshore projects, but these are more costly, challenging and time consuming. This combination has caused an unsteady revenue decline, following an all-time industry peak in 2009-10. IBISWorld estimates that industry revenue has declined at a compound annual rate of 0.3% over the five years through 2013-14, to a figure of £18.7 billion.
Firms in this industry extract crude gaseous hydrocarbon (natural gas) from offshore and onshore fields. Nearly all the United Kingdom's natural gas is extracted offshore. They also extract condensates, drain and separate liquid hydrocarbon fractions, and desulphurise gas. The industry excludes support activities for natural gas extraction and exploration, the manufacture of industrial gases and the operation of pipelines.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.