United Kingdom

Statut ITIE Progrès significatifs
Joined EITI in 2014
Dernières données de 2018
Latest Validation 2018
Site Internet EITI United Kingdom
Last updated 28 March 2021

Overview

The extractive industries in the UK comprise oil and gas production, mining and quarrying. These sectors continue to play a major role in the UK economy, contributing total Gross Value Added (GVA) of £13 billion in 2020 and directly employing some 60,000 people.

News, blogs and more

Information on news and events from the UK extractive sector can be found on the UK EITI website. Visit the UK EITI website.

Beneficial ownership disclosure

The UK public registry of ultimate beneficial owners of UK companies is called the People with Significant Control register. It was established in June 2016 under the UK Small Business, Enterprise and Employment Act 2015 and is part of the Companies House Register.  Read more about the UK's beneficial ownership work on the beneficial ownership page of the UK EITI website. There is also guidance for companies and the outcome of a recent consultation of companies available for more information. 

The UK signed up to the Extractive Industries Transparency Initiative, so that we too play our part in ensuring that people around the world benefit fairly from the natural resources of the countries in which they live. Mineral wealth for developing countries should be a blessing, not a curse.
HE David Cameron, former Prime Minister of the United Kingdom.

Production

The United Kingdom oil and gas industry is in its sixth decade of offshore production. Between 2014 and 2017, production on the UK Continental Shelf increased by over 15% - a significant achievement given the basin had previously seen a consistent decline since 2000. The increased production level derived from both improved performance of existing oil and gas fields and the addition of capacity from new field start-ups. In 2017 the UK mining and quarrying industry produced 176 tonnes of primary aggregates. Mining in some parts of the UK is undergoing an upturn with new projects and mines being developed in the North West and North East of England and in Scotland.

Graph of mining prices from 1990-2020 in the UK

Natural resources 

The United Kingdom has rich deposits of crude oil, natural gas, coal, tungsten, tin as well as a range of industrial and construction materials. Abundant oil and gas reserves are found offshore, while coal deposits are largely centred in Scotland, England and South Wales.

CommodityReservesUnitSignificance
Oil4,339million tonsMostly offshore. Proven and probable reserves, not possible resources.
Gas2,893billion Sm3Mostly offshore. Proven and probably reserves, not possible resources.
Coal4,000million metric tonsPotential resources. The UK has around 166 million tons of coal reserves operating mines and those in planning stages. There are another 167 million tons of coal in projects at pre-planning stage.
Tungsten318,000metric tonsEngland hosts the world's four largest known tungsten deposit, the Drakelands mine near Plympton, Devon.
Tin32,700metric tonsLocated at the Drakelands Mine near Plympton, Devon.
KaolinN/AUK deposits of kaolin are concentrated in Cornwall and Devon and world-class in terms of size and quality.
Ball clayN/ADeposits are centred in Devon and Dorset, mainly used for the manufacture of white ware ceramics
PotashN/AYorkshire has one of the largest proven world deposits of potassium-rich minerals.
SaltN/AEngland accounts for 95% of UK salt production, 80% of which takes place in Cheshire; the Boulby potash mine in Yorkshire is another large centre
FloursparN/AProduction is centred at the Southern Pennine ore field in the Peak District National Park.

UK oil and gas production

Production on the UKCS is currently split roughly 60:40 between oil production and natural gas production.

Combined oil and gas production volumes from the UKCS peaked in 1999 at 4.5 million barrel of oil equivalent (boe) a day and declined to 1.4 million boe/day by 2014 – a consequence of natural reservoir decline in existing fields combined with fewer/smaller developments. Between 2014 and 2019, however, this trend was reversed and production on the UKCS increased by 19% to 1.7 million boe/day.

Graph of oil, natural gas and total hydrocarbon production by million barrels from 1970-2020

Source: OGA based on BEIS data

UK crude oil production by start-up year of field

The UK is still a significant oil and gas producer, being responsible for 1.1% of global output of oil and gas in 2019, when the UK was the 21st largest producer of oil and gas (19th largest of both oil and gas).

Crude oil production in the UK by million tonnes from 2000-2019

Read more about UK oil and gas production.

 

Oil and Gas Production (Sm3 o.e)

Initializing chart.

UK mining and quarrying production

Although the UK has significant domestic supply of some minerals, it is a net importer of many minerals and mineral-based products, particularly metals, and in the long term has experienced a balance of trade deficit.

UK mineral exports and imports have both increased in recent years. However, imports and exports of the largest minerals flow, aggregates, are relatively low, accounting for less than 5% of the market. 

The Office for National Statistics (ONS) publish data on the volume of production and trade of metal ores and non-metallic minerals in its material flows account for the UK while they also report on the value of imports and exports. These data have yet to be verified so they are not included here to avoid giving a misleading impression of the scale of the sector.

The British Geological Survey (BGS) produce a periodic United Kingdom Minerals handbook which includes statistical data on the production of UK mineral resources including construction, industrial and metal minerals. 

Production data is also available from the annual Digest of UK Energy Statistics (DUKES) and supply and demand data via the monthly Energy Trends statistics.

Read more about the UK mining and quarrying sector. 

Coal Production (Tonnes)

Initializing chart.

Revenue collection

Payments and refunds reported by extractive companies and government agencies in 2019, totalled net £1,513.69 million. Most of these transactions cover Ring-Fence Corporation Tax and Supplementary Charge payments to HMRC and licence fee payments to the OGA.

A total of £10.55m was reported by out-of-scope and non-participating companies and this is subtracted from the overall total, leaving a total of £1,503.14m reported by government and a total of £1,503.13m reported by UK in-scope companies. The final reconciliation shows an unreconciled difference of £0.01m, which works out at 0.001% of the total, highlighting the transparency of the UK sector.

The government agencies that reported payments and refunds in 2019 were HMRC, The Oil and Gas Authority, The Crown Estate and Crown Estate Scotland. A total of 54 in-scope companies participated in the 2019 process – 37 oil and gas companies and 17 mining and quarrying companies. This represents 99.30% of potential in-scope payments.

Revenue collection: revenues over time

Initializing chart.

Disbursed revenues by company: Sankey

Revenue allocation

Full details of UK Government income and expenditure (outturn figures, estimates and forecasts) are published by the Office for Budget Responsibility (OBR). Government accounts are audited by the National Audit Office (NAO) and scrutinised by the Public Accounts Committee.

With very few exceptions, central government receipts are not hypothecated to specific items or types of expenditure. The principal central government extractive revenues currently earmarked for specific UK programmes or geographic regions involve the allocation of a population-based share of income from seaward petroleum licences to the Northern Ireland Government, as required by section 2 of the Miscellaneous Financial Provisions Act 1968. The amount transferred in 2019/20 was £2.0m (£1.7m in 2018/19).

All revenue ‘profit’ from Crown Estate Scotland goes to the Scottish Consolidated Fund and it is the responsibility of Scottish Ministers to decide how this is used. Crown Estate Scotland ensures that the assets are developed and enjoyed to deliver long-term value for communities and for the nation.

Onshore petroleum licensing is now devolved in Great Britain as well as to Northern Ireland, although the Oil and Gas Authority (OGA) continues to collect licence fees due on licences in Scotland and Wales as an agent for the respective administrations. Any amounts received in 2019 have been reported as received by the OGA; in practice, fees for licences in Scotland and Wales were waived.

In addition, the OGA Levy part-funds the operation of the OGA. The rates of the Levy are set by statutory instrument so have to be approved by Parliament. Any excess of income over expenditure is repaid to levy-payers which can result in net refunds for some levy-payers in a calendar year. The OGA is a vested company with operational independence from government. However, the Secretary of State (SoS) for Business, Energy and Industrial Strategy (BEIS) is the company’s sole shareholder and is ultimately responsible to Parliament for the OGA; the OGA Board of Directors is accountable to the SoS. The Permanent Secretary of BEIS is the Principal Accounting Officer for the OGA and is responsible to Parliament for any grant funding of the OGA; the OGA’s Chief Executive is responsible to the Permanent Secretary. The OGA’s Annual Report and Accounts are approved by the Board of Directors and the SoS.

Main revenue recipients by government entity

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • One of the United Kingdom’s objectives for EITI implementation is to support moves towards common global reporting standards in oil, gas and mining.

  • The United Kingdom has developed a publicly available Beneficial Ownership register with information on who owns and controls companies.

  • The 2020 EITI Annual Report provides five-year oil and gas production, budget and trade balance forecasts.

  • Disaggregated employment figures by region and gender are provided for mining and quarrying.   

Implementation

Governance

The EITI's Champion in the UK is Lord Callanan, Minister for Climate Change and Corporate Responsibility. The multistakeholder group is chaired by Matthew Ray, Department for Business, Energy & Industrial Strategy (BEIS). Read more about the composition of the multistakeholder group. The meeting minutes are also publicly available.

The UK government has taken a strong leadership role on the global tax transparency debate. The EITI was set up under its leadership back in 2002. The UK then supported the EU country-by-country reporting, committed to implement the EITI in 2013, placed tax and transparency at the centre of the G8 summit in 2013, and set up a beneficial ownership register in June 2016. In April 2018, the UK Parliamentary voted to require its overseas territories, including the British Virgin Islands and the Cayman Islands, to establish public beneficial ownership registers.

At a joint press conference with President of France François Hollande on 22 May 2013, Prime Minister David Cameron announced that the United Kingdom would implement the EITI. The commitment was reaffirmed at the 6th EITI Global Conference in Sydney in May 2013 and in the United Kingdom’s second OGP National Action Plan published at the 2013 OGP London Summit. The first EITI launch event took place on 9 July 2013 and the nominations to the multi-stakeholder group (MSG), composed of four members from each stakeholder group, were finalised in September 2013. The United Kingdom submitted its EITI Candidature application on 5 August 2014, approved by the EITI Board on 15 October 2014.

Timeline

Timeline of when UK joined, reports they have published and Validations

Validation

The country was admitted as EITI candidate in 2014.The first Validation of the UK was completed in 2019 and the EITI Board agreed that the United Kingdom had made “meaningful progress” in implementing the 2016 EITI Standard.

The EITI Board “congratulates the Government of the UK, the Multi-Stakeholder Group (MSG) and local stakeholders on establishing a robust platform to increase public understanding of the social and economic impacts of the UK's extractive industries and enrich public debate on the governance and stewardship of the UK's oil, gas and mineral resources.” The Board said that “the UK’s EITI implementation has effectively set the example for other resource rich countries” and that “the UK’s reporting is recognised by the Board as underscoring the Government’s commitment to transparency and accountability.”

The validation of the UK, carried out by the EITI International Secretariat during 2018, was intended to provide all stakeholders with an impartial assessment of whether EITI implementation in the UK is consistent with the provisions of the EITI Standard. The Validation Report also covered:

  • Impact of EITI in the UK

  • Implementation of activities encouraged by the EITI Standard

  • Lessons learnt in EITI implementation

  • Any concerns stakeholders have expressed

  • Recommendations for future implementation of the EITI

The initial Validation Report was published on 2 May 2019 and contained a number of recommendations and an assessment against each requirement of the Standard. This was followed by the independent Validator’s Report on 16 May 2019, which provided further comments on the initial report. Following further consultation with the UK MSG, on 14th November 2019 the EITI Board agreed an overall assessment of “meaningful progress” for the UK in implementing the 2016 EITI Standard. The Validation identified a number of corrective actions which the MSG have been addressing in preparation for their re-validation starting on 1st July 2021.

For further information on the UK’s Validation, please see the Board Decision.  

Progress by requirement

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