Since 1979, the British Government has privatized most state-owned companies, including British Steel, British Airways, British Telecom, British Coal, British Aerospace, and British Gas, although in some cases the government retains a "golden share" in these companies. The Labour government has continued the privatization policy of its predecessor, including by encouraging "public-private partnerships" (partial privatization) in such areas as the National Air Traffic Control System.

The United Kingdom is the European Unionís only significant energy exporter. It is also one of the worldís largest energy consumers, and most analysts predict a shift in U.K. status from net exporter to net importer of energy by 2020, possibly sooner. Oil production in the U.K. is leveling off. While North Sea natural gas production continues to rise, gains may be offset by ever-increasing consumption. North Sea oil and gas exploration activities are shifting to smaller fields and to increments of larger, developed fields, presenting opportunities for smaller, independent energy operators to become active in North Sea production.