Economic Report 2019

Oil and gas producers have strong incen�ves to reduce GHG emissions, froman ethical, environmental and financial basis. Alongside increasing societal and investor pressures, greater financial exposure to rising carbon prices has brought a clear focus on the impera�ve to reduce emissions. These issues will be factored into decisions around recovery of the UK’s remaining oil and gas resources and could mean that some resources become una�rac�ve to develop. However, new technology developments — such as using renewable energy to power installa�ons, or methods of reducing flaring and ven�ng — are offering lower-carbon means of producing oil and gas. Although produc�on from the UKCS will decline over �me, a number of fields being developed now or which have recently been brought on streamwill be in opera�on beyond 2050. The North Sea will reflect a much more diverse energy mix in the future which includes wind, wave, and CCUS alongside oil and gas produc�on. This will help to ensure that the maximum energy poten�al of the basin is realised.

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WHAT INDUSTRY HAS ALREADY DONE:

Reduced the carbon intensity of production operations by 16 per cent since 2013 as production has increased and emissions have remained relatively stable. Operators continue to make changes to processes and equipment offshore to improve emissions performance further.

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Commit to reducing the emissions intensity of oil and gas production in the UK over time to support the UK’s net-zero economy targets. In doing so, industry is committed to, and is already developing, testing and deploying the technologies required to drive a step change in emissions performance and emissions management. This is also a cultural change which places environmental performance alongside safety as an underlying business driver.

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WHAT INDUSTRY CAN DO:

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Industry collaboration to continue incremental efficiency improvements , particularly in production and energy usage offshore and to upgrade processing and power generation technologies. Alongside this companies can consider widespread electrification of offshore production facilities using renewable sources of energy supplied from on or offshore. Such change will benefit from supportive, engaged regulators and a predictable carbon-pricing regime.

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WHAT WILL BE REQUIRED:

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