STATISTICS 2016

long term temperature data and analyses such as the relationship between energy consumption and
the economy of the UK are available on BEIS’s energy statistics web site at:
www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes
Calorific values when producing energy statistics
1.3 In this publication Gross Calorific Values (GCVs) are used to convert fuel from their original
units to tonnes of oil equivalent (toe). An alternative is to use Net Calorific Values (NCVs) as detailed
in paragraph XVII of the introduction. The fuel specific GCVs and NCVs are shown at Annex A.
However, as some EU targets are calculated on data converted using net calorific values, aggregate
energy balances for the most recent years have been calculated using NCVs; these are used in Table
6.7, and are available on the internet version, Annex I, of this publication at:
www.gov.uk/government/collections/digest-of-uk-energy-statistics-dukes.
The energy industries
1.4 The energy industries in the UK play a central role in the economy by producing,
transforming and supplying energy in its various forms to all sectors. They are also major
contributors to the UK’s Balance of Payments through the exports of crude oil and oil products. The
box below summarises the energy industries’ contribution to the economy in 2015, based on the latest
available data from the Office for National Statistics (ONS):
2.5 per cent of GDP;
12 per cent of total investment;
35 per cent of industrial investment in 2015;
159,000 people directly employed (5.6 per cent of industrial employment);
Many others indirectly employed (e.g. an estimated 160,000 in support of UK Continental
Shelf activities).
1.5 The share of GDP at 2.5 per cent compares to a peak level of 10.4 per cent in 1982. The share
fell to below 4 per cent in most years since 2000, with the latest fall taking energy’s share of the UK
economy to its lowest level for over 40 years. The latest fall is largely due to the decline in the price of
oil; which fell by around 45 per cent in 2015. In 2015 investment in the energy industries fell back
from the recent high levels with reduced spending for oil and gas extraction. Employment has
remained broadly unchanged in the last seven years, but up from 10 years ago.
Aggregate energy balance (Tables 1.1, 1.2 and 1.3)
1.6 These tables show the flows of energy in the United Kingdom from production to final
consumption through conversion into secondary fuels such as coke, petroleum products, secondary
electricity and heat sold. The figures are presented on an energy supplied basis, in tonnes of oil
equivalent (toe), a unit of energy where 1 toe = 41.868 GJ, see also paragraph 1.29 for other energy
units.
1.7 Indigenous production in 2015 was 9.6 per cent higher than in 2014 (Chart 1.1). This is the
first rise in UK energy production since 1999. Production has fallen in each of the previous 15 years,
mainly due to declines in output from the UK Continental Shelf (UKCS). However, despite the rise in
output in 2015, production is 58 per cent below its peak in 1999. The rise in 2015 was mainly due to
increased output from the UKCS, with crude oil production up 13 per cent, and with gas production up
7.6 per cent. This growth was mainly down to new fields commencing production, but also due to less
maintenance activity taking place in 2015. Other significant sources of growth were from primary
electricity production, with wind and solar photovoltaics output both up sharply on increased capacity
and due to higher wind speeds. Bioenergy production was also up and helped to offset the impact on
growth of the reduction in coal production. Coal output fell sharply, down 26 per cent with a number of
mines closing and others producing less coal as they near the end of their productive life. More
details on these changes are given in the later fuel specific chapters.
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