The report on the challenges that Britain faces to secure its energy needs in a changing world was carried out by the Prime Minister’s Special Representative on International Energy, Malcolm Wicks.
It suggested that the UK was “on track” to meet the challenges, both internationally and domestically, as both oil and gas supplies from Britain’s sector of the North Sea are to run dry soon.
“The ability to maximize domestic energy reserves and to establish home grown energy sources is vital alongside the UK’s ability to pull on every lever internationally in support of energy security," Brown said.
The report, which took nine months to carry out, projected that Iran would have the highest growth in gas production in the next 20 years to become the world’s third largest supplier behind Russia and the US.
Already having the second biggest gas reserves, it was estimated that Iran’s production would almost treble from 116 billion cubic metres last year to 313bn in 2030.
“If and when broader considerations permit, building effective working relations with Iran, which has the second largest gas reserves in the world and which has low levels of production for export at the moment, could make a significant contribution to our energy security,” the report said.
As the biggest gas producer in the Middle East, it said that Iran plans to expand exports but that this had been “delayed for technical and political reasons in recent years” with heavy domestic needs being a key factor.
Development of the Southern Corridor gas route from the Caspian to Europe, which avoids Russia, was also seen vital to diversify sources that could potentially include supply from Iran as well as Iraq in future.
Responding to the findings, Energy and Climate Change Secretary, Ed Miliband, warned that Britain “cannot afford to be complacent about the challenges we face in securing our energy supplies.”
“We’ll continue to use fossil fuels in the near term as part of our transition to the low carbon economy and maximize our own North Sea reserves, as well as do all we can to secure the most diverse range of energy imports,” Miliband said.
The government said that it would “consider carefully” the recommendations made by Wicks, a former energy minister, and that it would publish a formal response in due course.
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