Economic Report 2019

Crucial to maintaining energy security

5. Oil and Gas Industry Roadmap to 2035: A Blueprint For Net-Zero In Summary T he global population continues to grow, and as societies become more wealthy, economic growth drives demand for energy, especially within developing economies. This presents the challenge of continuing to meet society’s needs for access to energy in a safe, sustainable, secure and affordable manner. In almost all credible future scenarios, the energy provided by the oil and gas industry will continue to be a vital part of the global energy mix. However, societal expectations are changing as the world seeks to respond to climate change through behavioural, technological and economic adaptation. The oil and gas industry, and the wider energy sector, is evolving in line with this challenge that we collectively face. The UK is the first G7 economy to commit to achieving net-zero emissions by 2050, and 2045 in Scotland. Over the last fifty years, the UK domestic oil and gas industry has helped provide secure and affordable energy to drive economic growth, and it has the potential to do so for decades to come. Delivering the UK’s net-zero ambition can be supported by the oil and gas industry with its skills, resources and expertise. The sector can continue to supply secure energy while contributing to climate goals by reducing emissions from its own production operations, helping to mitigate emissions from across the economy and advancing the development of low-carbon energy sources. To enable this approach, and following extensive cross-industry consultation and engagement, Roadmap 2035 has been developed to outline the current and future activity being undertaken by industry in line with the ambition for the sector in a net-zero UK economy. This roadmap represents the evolution of Vision 2035 and outlines how everyone involved in this industry can help secure its exciting future whilst meeting society's needs in a sustainable and safe manner. The UK oil and gas industry supports the ambition to achieve a net-zero carbon economy UK industry must remain internationally competitive to unlock new opportunities UKCS production continues to grow, now meeting 59% of oil and gas demand 59% The UK oil and gas industry supports the ambition to achieve a net-zero carbon economy UK industry must remain internationally competitive to unlock new op ortu ities Oil and gas will continue to make a vital contribution to the e ergy mix and energy security post-2050 Crucial to maintaining energy security UKCS production is equal to 45% of UK energy needs Oil and gas production contributed over £24 billion to UK GDP i 2018

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The UK oil and gas industry supports the ambition to achieve a net-zero carbon economy UKCS production continues to grow, now meeting 59% of oil and gas demand The oil and gas industry supports around 270,000 jobs across the UK 59%

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Oil and gas will continue to make a vital contribution to the energy mix and energy security post-2050 Drilling activity is increasing – more E&A wells have been drilled so far in 2019 than in the whole of 2018

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The industry has the skills, experience and resources to help

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the UK economy achieve net-zero

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