BFBEnergyPaper

Increased energy dependence3.6Another consequence of the high energy costs and the closure of power plants is that therehas been a noted increase in dependency on energy suppliers from outside of the EU (seeFigure 24). The last decade has seen the EU increase its import dependency whereas theUS has satisfied the increased demand mainly from domestic sources and has significantlydecreased its energy imports (gas imports in monetary terms decreased by 56 per cent,compared to their peak in 2005).Thanks in part, to its willingness to utilise shale gas reserves, the United States is set tobecome a net gas exporter by 2035 and is making strides towards ending its dependencyon imported oil. The EU, by contrast, will become far more dependent on energy imports by2035 and, as Figure 24 shows, will be one of the most dependent blocs in the world by 2035.Figure 24: Net oil and gas import dependence by region (2010-35) 147This has significant ramifications for both the EU and the wider world. It undermines effortsto combat climate change as Europe effectively exports its energy production to countrieswhich do not comply with the same high standards. As noted in a recent report:“It is likely that these refineries outside of the region would be emitting similarlevels of CO2 and other industrial emissions as if the refining capacity hadremained within the UK and EU and potentially significantly higher levels ofemissions depending on how stringent local regulations would be and howwell operated the refineries were. Europe would simply have “exported” theenvironmental and climate change issues associated with supplying Europe’srefined product demand to other countries.”- The role of the UK refining sector 148147 Replication of original graph found in European Commission, Energy Priorities for Europe: Presentation of J.M. Barroso to theEuropean Council, 22 May 2013, found at 148 IHS and Purvin & Gertz, The role and future of the UK refining sector, p.19, 10 May 2013, found at 43