British Gas generated 115 million British pounds in profits from domestic energy supply in 2021. This was a slight increase of approximately three percent in comparison to the previous year. British Gas is the largest energy supplier in the United Kingdom, however its market share and that of fellow Big Six suppliers has been in decline following the entrance of many green energy providers into the market.

British Gas recorded a net loss of ** million British pounds through its energy generation segment in 2021. The company's generation profits dropped in nearly every year from 2012 to 2019 after reaching a peak of *** million British pounds in 2012.

British Gas was the only of the Big Six energy suppliers to report a profit from domestic energy supply operations in Great Britain in the financial year 2021. At that year, the company made *** million British pounds from its domestic supply segment, while ScottishPower reported the greatest loss out of all companies.

In 2021, SSE generated the highest energy generation profit among the leading energy suppliers in Great Britain, at *** million British pounds. ScottishPower recorded the second-highest profit in the segment that year, at *** million pounds. Meanwhile, both British Gas and EDF recorded losses that year.

EDF made the highest non-domestic energy supply profit among the largest energy suppliers in Great Britain in 2021, at ** million British pounds. This was followed by British Gas, with a profit of around ***** million British pounds. Meanwhile, SSE and Scottish Power reported net losses in the non-domestic supply segment that year.

The United Kingdom: Revenue minus production cost of natural gas, percent of GDP: The latest value from 2021 is 0.17 percent, an increase from 0.04 percent in 2020. In comparison, the world average is 0.81 percent, based on data from 181 countries. Historically, the average for the United Kingdom from 1970 to 2021 is 0.14 percent. The minimum value, 0.02 percent, was reached in 1970 while the maximum of 0.3 percent was recorded in 2001.

The Gas Utilities industry in Europe has been anything but steady recently. The Russia-Ukraine war has rocked the whole supply chain, with Russia tightening its gas supply, Europe hustling to cut its reliance on Russian gas and gas prices shooting up following the initial invasion. Amid unprecedented price increases and threats to the supply of gas into Europe, European governments have been forced to step in to support customers and protect energy supplies. All that aside, the industry remains threatened by a long-term decline in gas consumption and accelerating efforts to transition to renewable sources of energy. Revenue is forecast to drop at a compound annual rate of 1.7% over the five years through 2024, reaching €390.5 billion. This growth is almost solely attributable to a spike in revenue recorded during 2022, which followed a recovery from pandemic-induced lows during 2021 when prices and demand recovered as global economic activity rebounded. Russia’s invasion of Ukraine kicked off a period of significant disruption in energy markets, with a surge in gas prices leading to record revenue and profitability for gas manufacturers while causing substantial losses for gas suppliers. Wholesale prices have eased from record highs as European governments have reduced reliance on Russian gas. At the same time, a drop in demand for gas has also contributed to a revenue contraction since the height of the energy crisis. Revenue is set to decline by 5.4% in 2024. Revenue is forecast to increase at a compound annual rate of 1% to €410.7 billion over the five years through 2029. European markets are set to pursue a green revolution in the coming years, with investment in renewable energy sources gathering pace as European governments strive towards emissions reduction targets. Investment in green alternatives to natural gas is likely to lead to a fall in demand, with plans set out by the European Commission to at least triple solar thermal capacity by 2030, displacing the consumption of nine billion cubic metres of gas annually. Gas prices are forecast to continue to rise until 2025, as Europe diversifies its gas supplies, before falling rapidly as renewable generation capacity rises.

The industry comprises eight Gas Distribution Networks (GDNs) across Great Britain, owned by four companies operating regional monopolies. Gas distributors are heavily regulated through price control frameworks set by Ofgem in the UK and NIAUR in Northern Ireland to protect consumers. Over the five years through 2025-26, gas distributors' revenue is forecast to decline at a compound annual rate of 0.8% to £5.2 billion. A downward trend in natural gas consumption has weighed on allowed revenue in recent years, though the impact of changing consumption trends has been mitigated by constant investment in GDNs to improve efficiency, which has been reflected by price controls. Soaring wholesale gas prices spurred an increase in shrinkage costs in 2021-22, leading to a cut to operating profitability. Price control adjustments allowed gas distributors to recover these cost increases, spurring a jump in revenue and profitability in 2022-23. These costs continued to be recovered in 2023-24, though declining consumption spurred a dip in capacity income, weighing on revenue allowances during the year. Revenue allowances continued to fall in 2024-25, reflecting a reduction in shrinking costs and adjustments made based on Supplier of Last Resort (SoLR) costs. Revenue is set to record renewed growth of 1.6% in 2025-26, supported by revenue true-ups to ensure that deferred revenue from previous periods is settled before moving on to the next price control period. Looking forward, the rising efficiency of GDNs, the rollout of smart meters and the decarbonisation of the energy system will influence gas distributors' revenue. Over the five years through 2030-31, revenue is forecast to climb at a compound annual rate of 1.2% to reach £5.6 billion. Major investment required to decarbonise GDNs, such as innovations to help displace natural gas with biomethane, will necessitate a boost in revenue allowances. Although specific details are yet to be released, Ofgem’s Sector Specific Methodology Decision (SSMD) indicates a potential increase in the allowed cost of equity for RIIO-GD3, boosting revenue and operating profit. Shrinkage costs are expected to decline as gas leak detection systems continue to improve. This is set to ease pressure on operating profit in the coming years.

The oil and gas support activities industries include a wide range of products and services, like geological observations, well drilling and spudding, used by oil and gas companies from the prospecting to the decommissioning stage of their operations. Industry revenue is expected to climb at a compound annual rate of 2.5% to £7.6 billion over the five years through 2024-25, including a 2.6% hike in 2024-25, when the average profit margin is projected to drop to 3.8%. Oil and gas support companies' revenue is highly susceptible to fluctuations in oil and gas prices, which is why the COVID-19 pandemic and the Russian invasion of Ukraine have wreaked havoc on the industry. The pandemic led to a significant proportion of investment being deferred due to historically low oil prices over 2020-21. The Russian invasion of Ukraine in February 2022 led to oil and gas prices skyrocketing as concerns about supply spread rapidly. The ongoing conflict and sanctions led to a sharp expansion in exploration activity and the need for support services, lifting revenue in 2021-22 and 2022-23. However, growing global oil supplies produced mainly in America are pushing oil prices down in 2024-25 despite OPEC+ supply cuts to attempt to keep prices up. If prices continue to drop, this might threaten investment in oil and gas exploration and extraction, hitting support activity companies. Growing policy uncertainty is also threatening investment in 2024-25 as possible tax hikes hit oil and natural gas companies’ confidence in the profitability of North Sea operations. Revenue is forecast to grow at a compound annual rate of 3.4% to just over £9 billion over the five years through 2029-30. This is mostly due to a fast-growing need for decommissioning activity in the North Sea due to many projects in the region approaching the end of their life cycle. Revenue from other support activities like well drilling is likely to fall in the following years, which is in line with the observed trend of UK well drilling. Government incentives will result in strong demand for cleaner practices that reduce emissions, as the sector has committed to cutting emissions by 50% by the end of 2030.

Natural gas producers are facing turbulent times. Europe has traditionally relied on Russia and Norway as internal sources of natural gas, while countries such as the US, Qatar and Algeria are major sources of imports (although accounting for a much smaller share of overall consumption). Russia’s invasion of Ukraine has shaken up Europe’s natural gas supply structure, with European governments making efforts to reduce their dependence on Russian gas supplies. Revenue is forecast to swell at a compound annual rate of 16.2% to €113.9 billion over the five years through 2025. Revenue expanded in 2021 and 2022 as a sharp hike in natural gas prices and a post-pandemic rise in demand drove an increase in exploration and production activity. Russia’s invasion of Ukraine led to a spike in natural gas prices, with the impacts of reduced demand for gas and a decrease in Russian gas production outweighed by soaring wholesale prices and heightened demand for other natural gas reserves, spurring a jump in revenue. An ongoing reduction in demand for natural gas and easing prices caused revenue to dip in 2023 and 2024. In 2025, revenue is slated to bounce back by 53.3% owing to geopolitical uncertainties, including trade wars and fresh sanctions on Russia, buoying natural gas prices. Revenue is forecast to rise at a compound annual rate of 2.3% over the five years through 2030 to just under €128 billion. The gas market will continue to be shaped by geopolitical tensions into the medium term, with the International Energy Agency expecting natural gas prices to remain high until 2025 as countries continue to shift their supply structure. Following this, natural gas demand and prices are set to fall as Europe continues to expand its renewables capacity.

Europe’s petroleum and natural gas extraction support services’ revenue is forecast to contract at a compound annual rate of 3.8% over the five years through 2024 to €62.1 billion. Widespread disruption caused by the COVID-19 pandemic weighed heavily on extraction and exploration activity in downstream oil and gas markets as poor demand conditions caused prices to plummet, disincentivising new investment and causing support service contractors to offer price concessions to customers, compounding the industry’s weak revenue performance and weighing on profitability. Demand has increased since lockdown restrictions eased, supporting revenue over 2021 and 2022. Russia’s invasion of Ukraine led to significant price increases in both oil and gas due to supply uncertainties. This also led to Norway becoming Europe’s largest natural gas supplier in 2022, supporting revenue opportunities for Norwegian contractors. Norway has also increased the level of investment into new oil and gas fields to alleviate uncertainties regarding supply following trade restrictions placed on Russian oil and gas. Nonetheless, weakening demand and falling oil and gas prices have contributed to an expected revenue slump of 20.3% in 2024. Over the five years through 2029, revenue is forecast to climb at a compound annual rate of 7% to €87.2 billion. New investments into oil and gas fields will provide contractors with new revenue opportunities, supporting revenue growth and expanding profitability. However, ongoing efforts across Europe to meet environmental and emissions targets, like net zero by 2050, will continue to threaten demand for oil and gas, somewhat limiting revenue growth.

Mining, construction and civil engineering machinery sales depend on business sentiment, public infrastructure investment and construction output. The COVID-19 outbreak effectively halted construction, mining and engineering projects overnight. Over 2020, according to the ONS, construction and manufacturing output fell by 12.5% and 9.9%, while the North Sea Transition Authority reported that oil and gas companies cut expenditure by 23%, all of which were the driving force behind revenue tanking in 2020-21. However, revenue rebounded over 2021 and 2022, supported by a booming construction market and a resurgence in the UK oil and gas sector. Over the five years through 2024-25, revenue is forecast to climb at a compound annual rate of 1.96.7% to £7 billion, withstanding a 1.9% tumble in revenue in 2024-25.Government initiatives to stimulate the housing market, like the UK Help to Buy and Home Building Fund scheme, have boosted sales to residential construction contractors. The government has also invested widely in infrastructure, with HS2 and the National Infrastructure and Construction Pipeline representing two of the most significant projects in UK history. These projects supported extensive demand for drilling machinery, excavators, bulldozers and loaders. On top of this, the government issuing new North Sea oil and gas exploration licenses has supported sales of oil drilling equipment. However, downstream coal mining activity has dried up following the government's desire to phase out the highly polluting energy source.Infrastructure projects like HS2 will provide a steady revenue stream for machinery wholesalers, expected to be completed between 2029 and 2033. The North Sea Transition Authority has released over 100 new exploration licences for oil and gas companies, supporting investment in exploration machinery. Wholesalers' product mix will shift towards high-margin battery-powered electric machinery as the government seeks to hit its net zero emissions target, supporting profitability. However, the lingering threat of wholesale bypass will weigh on revenue growth as vertically integrated manufacturers take customers away from the industry. Over the five years through 2029-30, machinery sales are forecast to inch upward at a compound annual rate of 0.3% to reach £7.1 billion.

The UK’s Tap and Valve Manufacturing industry is small compared to other countries, so imports account for most domestic sales. At the same time, manufacturers heavily rely on export revenue. Because of the high degree of international trade, growth in demand for taps and valves in the UK market has had little effect on local manufacturers. Revenue is expected to contract at a compound annual rate of 7.5% over the five years through 2023-24 to £1.2 billion. Turbulent conditions in the global oil and gas market have dented in revenue prospects. Alongside this, the effects of the cost-of-living crisis have driven a dip in demand from construction output, dampening tap and valve sales. Competitive pressures have continued to put pressure on both revenue and profit. Revenue plummeted in 2020-21 thanks to widespread COVID-19 disruption, which brought manufacturing activity to a halt and disrupted global supply chains. In 2021-22, tap and valve manufacturing revenue expanded but failed to fully recover, as export restrictions from COVID-19 were not fully lifted. In 2023-24, revenue is slated to dip by 5.4% as inflationary pressures continue to weigh on demand and limit the international competitiveness of UK-based tap and valve manufacturers. Over the five years through 2028-29, revenue is forecast to edge downwards at a compound annual rate of 0.1% to just under £1.2 billion. Although government construction and housebuilding initiatives look set to boost domestic tap and valve sales, low-cost imports from emerging nations will reap most of the rewards. However, domestic sales to water companies will provide strong sales opportunities, as water main and sewer system construction is set to grow under Asset Management Plan 8. Ongoing product development and innovation will be crucial in ensuring UK tap and valve manufacturers keep up with international competition and remains competitive in the face of import penetration. Manufacturers will look to capitalise on their high-quality reputation to secure contracts in key export markets, moving towards specialised products such as digitally controlled and energy-efficient valves.

BP produced **** million barrels of oil per day in 2024. This represented one of the lowest production volumes in the period of consideration and was largely the result of divesting of Rosneft shares from 2022 onward. North America has been the company's largest producing region since 2021 accounting for ******* barrels of daily output in 2024. BP is a multinational company headquartered in the United Kingdom and active in all areas of the oil and gas supply chain, including power generation. Its subsidiaries are active on all continents apart from Antarctica. BP's natural gas production stood at *** billion cubic feet per day in 2024. Reserves and production overview Despite maintaining significant oil reserves, BP's production levels have seen notable changes. The company held proved liquids reserves of approximately *** billion barrels in 2024, a substantial decrease from the ** billion barrels reported in 2021 - before its Rosneft divestment. This reduction in reserves coincides with a fall in daily liquids production to around *** million barrels. In the natural gas sector, BP maintained reserves of **** billion cubic feet in 2024, while its daily production stood at *** billion cubic feet. Financial performance amid lower refining margins BP's upstream business segment generated revenues of **** billion U.S. dollars in 2024, showing a decrease from the previous year. The downstream business segment remained a significant revenue generator, bringing in ***** billion U.S. dollars in 2024. However, operational changes were evident in the refinery sector, with lower refining margins resulting in BP reporting the lowest throughput figure in recent years.