The UK offshore oil and gas industry will play a key role in helping the UK and Scottish governments reach lower carbon emission targets while meeting the region’s energy demand, according to a new report from an industry organization.
“Roadmap to 2035: A Blueprint for Net Zero” outlines several key themes requiring industry, government, and regulator action to ensure that the oil and gas sector can continue to provide secure energy supply, support net zero emissions, and remain a vital contributor to the UK economy. The report was released this week by the industry body Oil and Gas UK (OGUK).
The report recommends coordinating activities to reduce emissions from the production of oil and gas, which currently accounts for 3% of UK total greenhouse gas emissions, and understanding how the UK oil and gas industry can play a key role in developing and commercializing low-carbon technologies including carbon capture and storage and hydrogen.
The plan is one of the first major industrial responses to government plans to reduce or offset carbon emissions to net zero by 2050 in the UK and 2045 in Scotland. UK Oil and Gas said the report came after extensive discussions with more than 2,500 industry stakeholders. The roadmap is the centerpiece of a more detailed report published by the leading representative body for the industry.
“OGUK’s Economic Report 2019” reinforces the importance of the sector to the UK’s economy and to meeting the energy needs of consumers. It shows that 75% of the UK’s current energy needs are met from oil and gas, with more than half (59%) of oil and gas demand met by domestic production. It highlights the Committee on Climate Change forecasts that the UK will still consume approximately 65 million tonnes of oil equivalent per year (roughly 45% of current demand) in 2050, making carbon capture and development of hydrogen essential.
The report notes that continued collaboration among industry, government, and regulators will be required to maintain the competitiveness and sustainability of the North Sea basin so that as much of UK demand as possible is met from its own resources.
“Roadmap 2035 shows an industry in action with a credible plan for the future,” said OGUK Chief Executive Deirdre Michie. “While we don’t have all the answers to the big challenges we face, we have started work on what we know can be done. We are ready to work with others in developing some of the new solutions the UK needs. The facts outlined in our report evidence that our industry remains a vital economic asset and is uniquely positioned to help the UK meet its net zero ambitions and energy needs in the years to come.”
Michie said the region now needs a comprehensive UK energy strategy that “recognizes the continued role of oil and gas in a diverse energy mix and positions us to support net zero.”
“Our economic report shows we are already playing an active role in the transition to a more diverse energy mix, with many of our members investing in renewables, developing new technologies, and bringing new solutions to market,” Michie said.