Economic Report 2019

Pathway 2 — Developing a World-Leading, Low-Carbon Offshore Oil and Gas Industry The CCC has set a target for emissions from the production of oil and gas in the UK of 500,000 tonnes of CO 2 equivalent (CO 2 e) in 2050. Based on UKCS production projections it is estimated that UK operators will need to deliver production with an emissions intensity of 4,000 tonnes CO 2 e/million boe, or less, by that date — compared with an estimate of just under 24,000 tonnes CO 2 e/million boe today. 37 emissions independently verified as part of the EU ETS. There has been some progress in this area, evidenced by a 16 per cent improvement in carbon intensity since 2013, as production has increased and CO 2 emissions have remained relatively stable Figure 27 provides an indication of the scale of the challenge that the UKCS faces in terms of reducing the emissions intensity of producing fields. In 2018, the UKCS had an average carbon intensity of 21,000 tonnes CO 2 /million boe, whereas surface installations within the remit of the EU ETS (e.g. a platform or FPSO) had an average carbon intensity of almost 24,000 tonnes CO 2 /million boe. Carbon intensity levels provide a good indication of industry’s performance in this area, with CO 2

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Figure 27: UKCS Surface Installation Carbon Intensity

600,000

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2050 Carbon Intensity Target

500,000

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Oil Installation Gas Installation UK 2018 Average

400,000

Size of bubble relates to scale of production

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300,000

200,000 CO 2 Emissions (Tonnes)

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100,000

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0

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

Carbon Intensity (Tonnes CO 2

/million boe)

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Source: OGUK, PPRS, EU ETS

Gas turbines, which are predominantly used to generate off-grid power offshore, are the largest source of offshore emissions. Decarbonising offshore power generation presents one of the largest opportunities when exploring how to deliver these reductions, however significant progress will also need to be made in reducing emissions from the flaring and venting of waste gases.

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37 OGUK Environment Report 2019 www.oilandgasuk.co.uk/product/environment-report/

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