| KN40022 |
| KEY NOTE Energy Industry : February 2002 |
|
Our price £565 plus VAT |
CLICK
 TO BUY |
This report covers: oil industry, natural gas industry, electricity industry, nuclear energy, coal industry, renewable energy, primary fuels, petroleum, solid fuel, coke oven gas, LPG, liquified petroleum gas, hard coke, gas oil, crude oil production, petrol retailing, refiners, refinery distillation, natural gas, electricity generation, REC, nuclear waste, steam coal, coking coal, hydro-electric, biofuels, wind power, solar energy, energy crops, waste biogases, CHP, combined heat and power
Companies covered include: Amerada Hess, BG Group, Innogy PLC,UK Coal PLC,BP Amoco, British Energy, National Power, PowerGen, RJB Mining, Shell Transport & Trading, TXU Europe Group, Texaco, Esso, TotalFinaElf, National Grid, ScottishPower, Scottish & Southern Energy, British Energy, BNFL, Nirex, AEA Technology
EXECUTIVE SUMMARY
The UK enjoys a wealth of indigenous energy resources and has the technical expertise and experience to exploit them. Much of this expertise is being utilised in gainful commercial ventures overseas. In its position as one of the most energy-rich countries in Europe, the UK is uniquely placed to profit from a strong energy market.
Expenditure on energy amounted to £69.87bn in 2000. UK householders spent £30.67bn on energy products, representing 5.2 percent of total consumer expenditure.
- Oil — a vital commodity since most manufactured goods rely on oil for some part of their manufacture. Its most important use is for transport, but it also provides other fuels and petrochemical feedstocks. It is a major export commodity and of considerable importance to the UK economy. Proceeds from the sale of crude oil and natural gas liquids (NGLs) amounted to £17.24bn in 2000, from total sales of £26.98bn for mineral oil and natural gas from UK sources.
- Natural gas — this has become the dominant fuel for electricity generation by the use of combined cycle gas turbine (CCGT) technology. Net sales of natural gas amounted to £9.44bn in 2000.
- Electricity — domestic sector sales of electricity accounted for 45.2 percent of the total sales of £15.59bn in 2000. This sector has seen large changes as a result of restructuring the industry and competition has provided downward pressure on prices.
- Nuclear energy — a declining resource in the UK where nuclear power stations are being decommissioned. However, the country is recognised as a market leader in fuel fabrication, reprocessing and nuclear technology which provides good export opportunities.
- Coal — for which there are plentiful resources but a dwindling market. The survival of coal is dependent on government aid and policy, the New Electricity Trading Arrangements (NETA) and environmental compliance of coal-fired generation.
- Renewables — such as wind, solar and biofuels provide more environmentally-friendly alternatives and are receiving strong government support to promote their use. They are considered to have the potential to meet a significant proportion of global energy needs over the coming decades, although at present they are more expensive than fossil fuels. The cost differential is narrowing as technology develops.
Shares of users' expenditure on each fuel are illustrated in Table 1.
| Table 1: UK Consumption of Primary and Secondary Fuels | ||||
| by Final Users by Sector by Value ( percent of each sector), 2000 | ||||
| Industry | Domestic | Others | All Users | |
| Solid fuels | 7.2 | 3.2 | - | 1.3 |
| Petroleum products | 18.9 | 5.2 | †88.1 | 65.2 |
| Natural gas | 18.4 | 39.2 | 1.9 | 10.9 |
| Secondary electricity | 55.5 | 52.4 | 10 | 22.6 |
| Total | 100 | 100 | 100 | 100 |
| † — of which 92.6 percent are used in road transport | ||||
| Source:Digest of UK Energy Statistics, 2001 |
MARKET RESTRUCTURING
Privatisation has provided the impetus for competition, resulting in a major restructuring of the energy industries and the companies involved. Restructuring commenced in the late 1980s with the privatisation of the gas sector, closely followed by similar moves in the electricity, coal and nuclear sectors. Oil resources had always been in private hands. Full liberalisation was achieved in May 1999, with the completion of the opening up of the electricity market. All consumers, both domestic and business, are now free to choose their supplier of gas or electricity.
Convergence of the gas and electricity sectors of the energy industry has resulted from liberalisation and the freedom for different parts of the energy industry to cross into each other's territory. A traditional oil and gas company (such as The Shell Transport and Trading Company PLC) is expanding into US electricity. Electricite de France, the world's largest utility group now trades gas, albeit outside of France. The level of convergence can be gauged by looking at the oil companies, many of which have put gas and power into the same corporate division. TotalFinaElf SA is buying the Argentine power plants of Gener, the Chilean utility. BG Group PLC operates power stations in Northern Ireland and the Philippines.
Mergers and Acquisitions
A succession of bids, notably in the electricity sector where many of the regional electricity companies (RECs) are under new ownership, has changed the nature and structure of the energy industry. Thus, public electricity suppliers have evolved since privatisation into complex structures embracing diverse businesses. Most have extended their interests into generation or are part of wider groups with major interests in generation.
Change of ownership among power supply companies has been occurring fast and furiously over the past few years. The changes reflect the pace at which the British power industry is consolidating. In September 2001, Northern Electric PLC acquired Yorkshire Electricity Group PLC's distribution assets from Innogy PLC, and in return Innogy acquired Northern Electric's electricity and gas supply customer base and its metering business.
Acquisitions by foreign concerns, notably from the US and from Europe, have created a much more international industry. The £10bn take-over of Powergen PLC by E.ON of Germany remains on track for completion in 2002. However, the cost of acquiring energy customers has become too high for some US energy groups. The collapse of Enron Corp., the energy trading group, in November 2001, was threatening to destabilise energy markets in the US and Europe.
The market has responded positively to these changes. The future should provide greater opportunities in Europe and overseas resulting from the increasingly global nature of the energy market. The experience gained from deregulation of the UK energy market can be readily employed in Europe and the US where liberalisation started more recently. The multi-sector approach provides a competitive driving force to stimulate a strong market with good commercial rewards.
TABLE OF CONTENTS
| Executive Summary |
| INTRODUCTION |
| Table 1: UK Consumption of Primary and Secondary Fuels by Final Users by Sector by Value ( percent of each sector), 2000 |
| MARKET RESTRUCTURING |
| Mergers and Acquisitions |
| 1. Market Overview |
| MARKET DEFINITION |
| The Oil Industry |
| The Gas Industry |
| The Electricity Industry |
| The Nuclear Industry |
| The Coal Industry |
| The Renewable Energy Industry |
| INTRODUCTION |
| Primary and Secondary Fuels |
| INDUSTRY STRUCTURE |
| Table 1.1: Employment in the UK Energy Industries (000 employees and percent), 1980, 1990 and 1998 |
| Trade Associations |
| Energy Industries Council |
| TOTAL MARKET SIZE |
| Energy Expenditure |
| Table 1.2: Final Consumers’ Expenditure on Energy in the UK by Sector (£m), 2000 |
| Table 1.3: Final Consumers’ Expenditure on Energy in the UK by Fuel Type (£m), 2000 |
| Table 1.4: UK Household Expenditure on Energy at Current Prices (£m), 2000 |
| KEY TRENDS |
| Production |
| Table 1.5: UK Production of Primary Fuels by Volume (mtoe), 1970, 1980, 1990, and 1998-2000 |
| Consumption and Production |
| Table 1.6: UK Production and Consumption of Primary Fuels by Volume (mtoe), 2000 |
| Table 1.7: UK Final Energy Consumption by Sector ( percent), 2000 |
| Table 1.8: UK Final Consumption by Fuel Type ( percent), 2000 |
| Industrial Fuel Prices |
| Table 1.9: Industrial Fuel Prices in the UK (pence per kilowatt hour), 1995-2000 |
| Future Prospects |
| PEST ANALYSIS |
| Political |
| Utilities Act |
| Energy Policy — Security of Supply |
| European Directive on Renewables |
| European Proposals for Promoting Alternative Fuels |
| Economic |
| Dual Fuel Offers |
| Climate Change Levy |
| Energy Efficiency |
| Energy Prices |
| Lifting of Price Controls |
| Energy Trading |
| New Electricity Trading Arrangements |
| Social |
| Fuel Poverty |
| Environment |
| Technological |
| Improvement in Generating Plant Efficiencies |
| Dual Fuel Generation |
| Clean Fuel Technology |
| EUROPEAN/GLOBAL PERSPECTIVE |
| Opening up the Market in Europe |
| Forecasts |
| Energy Projections |
| Table 1.10: UK Primary Energy Demand Projections (mtoe), 2000, 2005, 2010, 2015 and 2020 |
| 2. Competitor Analysis |
| INTRODUCTION |
| PROFILES OF SELECTED LEADING COMPANIES |
| Amerada Hess Ltd |
| BG Group PLC |
| BP PLC |
| British Energy PLC |
| Innogy PLC |
| Powergen PLC |
| Shell Transport and Trading Company PLC |
| TXU Europe Group PLC |
| UK Coal PLC |
| 3. The Oil Industry |
| INTRODUCTION |
| Influences on the Industry |
| KEY TRENDS |
| Production of Crude Oil |
| Table 3.1: UK Production of Crude Oil by Volume (000 tonnes), 1996-2000 |
| Production of Petroleum Products |
| Table 3.2: UK Production of Petroleum Products from Imported and Indigenous Crude by Volume (000 tonnes), 2000 |
| Prices |
| Table 3.3: North Sea Crude Prices ($ per barrel), 1976-2000 |
| Oil Consumption |
| Table 3.4: UK Consumption of Petroleum Products by Volume (tonnes), 2000 and January to October 2000-2001 |
| Liquefied Petroleum Gas |
| Petrol Retailing |
| Petrol Sites |
| Table 3.5: UK Petrol Retailing Sites by Number and Average Throughput (tonnes and million litres), Year End 1990-2000 |
| Table 3.6: Suppliers of Petrol to the UK Retail Market by Outlets Supplied, Self-Service Sites and Company-Owned Sites (number and percent), Year End 2000 |
| Table 3.7: Number of Petrol Outlets at UK Supermarkets by Type of Fuel, Year End 2000 |
| Europe |
| MARKET SIZE |
| Table 3.8: Annual Sales of Mineral Oil and Natural Gas from UK Sources by Value (£m), 1996-2000 |
| Exports and Imports of Crude Oil |
| Table 3.9: UK Exports of Crude Oil by Volume and Value (000 tonnes and £m), 2000 |
| Table 3.10: UK Imports of Crude Oil by Volume and Value (000 tonnes and £m), 2000 |
| Exports and Imports of Refined Products |
| Table 3.11: UK Exports of Refined Petroleum Products by Type by Volume and Value (000 tonnes and £m), 2000 |
| Table 3.12: UK Imports of Refined Petroleum Products by Type by Volume and Value (000 tonnes and £m), 2000 |
| MARKET STRUCTURE |
| Companies |
| Table 3.13: UK Refining Distillation Capacity (000 tonnes), Year End 2000 |
| Pricing |
| Employment |
| Distribution of Products |
| Trade Associations |
| MAJOR PLAYERS |
| Shell |
| BP |
| Texaco |
| Esso |
| TotalFinaElf |
| Amerada |
| FORECASTS 2001-2006 |
| Production |
| Table 3.14: Forecast UK Oil Production by Volume (million tonnes), 2001-2006 |
| Capital Expenditure |
| Table 3.15: Forecast Capital Expenditure for Total Categories (£bn), 2001-2006 |
| Future Targets |
| 4. The Gas Industry |
| INTRODUCTION |
| KEY TRENDS |
| Gas Supply and Demand |
| Table 4.1: Supply of and Demand for Natural Gas and Colliery Methane in the UK (gigawatt hours), 1998-2000 |
| Table 4.2: Analysis of UK Natural Gas and Colliery Methane Demand (gigawatt hours), 1998-2000 |
| MARKET SIZE |
| Natural Gas Sales |
| Table 4.3: UK Gas Sales by Sector by Value (£m), 1998-2000 |
| Natural Gas Consumption |
| Table 4.4: UK Consumption and Demand for Natural Gas (gigawatt hours), 1998-2000 |
| Overseas Trade |
| Table 4.5: UK Imports and Exports of Natural Gas (gigawatt hours), 1996-2000 |
| Table 4.6: UK Imports and Exports of Natural Gas by Value (£m), 1996-2000 |
| MARKET STRUCTURE |
| Northern Ireland |
| Distribution |
| The European Market |
| MAJOR PLAYERS |
| The Domestic Market |
| Domestic Prices |
| The Industrial and Commercial Market |
| Advertising and Promotion |
| Table 4.7: Main Media Advertising Expenditure by Gas Companies (£000), Year to September 2000 and 2001 |
| Buying Behaviour |
| Forecasts 2001-2006 |
| Production |
| Table 4.8: Forecast UK Gas Production by Volume (billion cubic metres), 2001-2006 |
| 5. The Electricity Industry |
| INTRODUCTION |
| KEY TRENDS |
| Electricity as a Primary Fuel |
| Table 5.1: Primary Fuels by Market Share on the Basis of Energy Supplied ( percent), 1990, 1995 and 1997-2000 |
| Electricity as a Secondary Fuel |
| Fuel Input for Electricity Generation |
| Table 5.2: UK Fuel Input for Electricity Generation by Volume (mtoe), 1996-2000 |
| MARKET SIZE |
| Table 5.3: UK Electricity Sales by Sector by Value (£m) 1998-2000 |
| The Development of Competition |
| Domestic Sector Competition |
| Overseas Trade |
| MARKET STRUCTURE |
| Employment |
| Trade Associations |
| The Electricity Association |
| Association of Electricity Producers |
| MAJOR PLAYERS |
| Centrica and TXU Europe |
| Innogy |
| National Grid |
| Suppliers |
| Northern Electric |
| Northern Ireland |
| Northern Ireland Electricity |
| Scotland |
| ScottishPower |
| Scottish and Southern Energy |
| Powergen |
| Advertising and Promotion |
| Table 5.4: Main Media Advertising Expenditure by Electricity and Combined Utilities Companies (£000), Year to September 2000 and 2001 |
| Buying Behaviour |
| Electricity Consumption |
| Table 5.5: UK Electricity Consumption by User Category (terawatt hours), 1996-2000 |
| Forecasts 2005-2020 |
| Future Use of Fuels for Electricity Generation |
| Table 5.6: Forecast UK Electricity Generation by Fuel Type (terawatt hours), 2000, 2005, 2010, 2015 and 2020 |
| 6. The Nuclear Industry |
| INTRODUCTION |
| Nuclear Generation |
| Fuel Cycle |
| Disposal of Waste |
| KEY TRENDS |
| Nuclear Consumption |
| Table 6.1: World Consumption of Nuclear Energy by Country by Volume (mtoe), 1990-2000 |
| Table 6.2: UK Consumption of Primary Fuels by Fuel Type ( percent), 1990, 1995 and 1997-2000 |
| MARKET SIZE |
| MARKET STRUCTURE |
| Security of Energy Supply |
| Employment |
| Trade Associations |
| A Global Perspective |
| MAJOR PLAYERS |
| Nuclear Generators |
| British Energy |
| BNFL |
| Nuclear Fuels Processing and Waste Management |
| BNFL |
| Nirex |
| Technology |
| Future Prospects |
| 7. The Coal Industry |
| INTRODUCTION |
| Types of Coal and Other Solid Fuels |
| KEY TRENDS |
| Coal Production |
| Table 7.1: Mined Coal Production in the UK by Volume (million tonnes), 1947, 1950, 1955, 1960, 1970, 1980, 1990, 1995 and 1997-2000 |
| Coal Consumption |
| Table 7.2: UK Supply, Demand and Consumption of Coal by Volume (000 tonnes), 1999 and 2000 |
| A Global Perspective |
| Table 7.3: World Coal Production (million tonnes and percent of total), 2000 |
| Table 7.4: World Coal Consumption (million tonnes and percent of total), 2000 |
| MARKET SIZE |
| Table 7.5: UK Purchases of Coal and Manufactured Solid Fuels by Sector by Value (£m), 2000 |
| Overseas Trade |
| Exports |
| Imports |
| Table 7.7: UK Imports of Solid Fuel by Volume and Value (000 tonnes and £m), 1999 and 2000 |
| MARKET STRUCTURE |
| Aid to the Industry |
| Distribution of Coal and Solid Fuels |
| Trade Associations |
| The Solid Fuel Association |
| Confederation of UK Coal Producers |
| Coal Merchants’ Federation (Great Britain) Ltd |
| MAJOR PLAYERS |
| Buying Behaviour |
| Power Generators |
| Domestic Users |
| Future prospects |
| Clean Coal |
| Forecasts 2005-2020 |
| Table 7.8: Projected Primary Energy Demand by Type (mtoe), 2000, 2005, 2010, 2015 and 2020 |
| 8. The Renewable Energy Industry |
| INTRODUCTION |
| KEY TRENDS |
| Renewable Energy Consumption |
| Table 8.1: Renewable Sources Used to Generate Electricity and Heat in the UK by Volume (000 tonnes of oil equivalent), 1998-2000 |
| MARKET SIZE |
| Table 8.2: Electricity Generated from Renewable Sources in the UK (gigawatt hours), 2000 |
| Export Opportunities |
| Europe |
| MARKET STRUCTURE |
| Wind Power |
| Waste |
| Energy Crops |
| Hydropower |
| Solar Energy |
| Other Technologies |
| Trade Associations |
| The Confederation of Renewable Energy Associations |
| British Wind Energy Association |
| Solar Trade Association |
| The Landfill Gas Association |
| The Energy from Waste Association |
| The British Hydropower Association |
| British Biogen |
| The British Photovoltaic Association |
| MAJOR PLAYERS — BY COMPANY |
| Innogy |
| Powergen |
| Shell Renewables |
| BP Solar |
| MAJOR PLAYERS — BY ENERGY SECTOR |
| Solar Energy |
| Biomass |
| Waste |
| Fuel Cells |
| Hydropower |
| Wave Power |
| Combined Heat and Power |
| Table 8.3: Combined Heat and Power Installations and Capacities in the UK (numbers, megawatts and percent), 2000 |
| Table 8.4: Combined Heat and Power Usage in the UK by Sector (number of sites, wattage — electrical and thermal — and gigawatt hours), 2000 |
| FUTURE PROSPECTS |
| Financial Support |
| Europe |
| The Non-Fossil Fuel Obligation |
| Renewables Obligation |
| New Projects |
| Wind Energy |
| PV Systems |
| 9. Strengths, Weaknesses, Opportunities and Threats |
| STRENGTHS |
| WEAKNESSES |
| OPPORTUNITIES |
| THREATS |
| 10. The Future |
| Collapse of Enron |
| Global Oil and Gas Spending |
| Security of Supply of Oil and Gas |
| Investment in Gas |
| Nuclear and Renewables |
| 11. Further Sources |
| Associations |
| Periodicals |
| Directories |
| General Sources |
| Bonnier Information Sources |
| Government Publications |
| Other Sources |
| Key Note Research |
| The Key Note Range of Reports |
Text © 2004 Key Note
| Can't find what you
need? Try our "Research on Request" market report service and define your own report research! Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days |
| Click here for full details |
Ariadne - working together with our customers
to enhance productivity and increase knowledge
© 2004
www.the-list.co.uk Ariadne
Last updated by Amanda Porteous February 2004
