Economic Report 2019

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The oil and gas industry is aligned with the UK’s commitment to become a NET-ZERO ECONOMY BY 2050

It is estimated that achieving net-zero could require around £1 trillion of investment across the UK economy — providing significant opportunities for oil and gas companies to apply their experience, expertise and technology

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outlines the near-term priorities for the industry to create a sustainable future • Supporting net-zero • Helping meet UK needs • Developing people and skills

Oil and gas companies can have an important role in helping to achieve net-zero. In the decades to come, the industry can: • Maintain energy security • Reduce emissions from oil and gas production • Support the mitigation of emissions from the wider economy • Advance the development of low-carbon energy sources through investment and diversification The Committee on Climate Change estimates that in 2050, UK oil and gas demand will still be around 65 mtoe , at least 30% of which will be met by production from the UK

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• Driving technology and innovation • Growing the economy and exports

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The carbon intensity of the UKCS has fallen by 16% since 2013 to 21,000 tonnes CO 2 /million boe. The industry needs to deliver production with an emissions intensity of 4,000 tonnes CO 2

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e/million boe

by 2050

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The CCC estimates that 175 million tonnes of CO 2 /year will need to be captured and stored in the UK by 2050 The UK oil and gas industry is in a unique position to lead in the development of CCUS Oil and gas companies are already supporting CCUS schemes at 18 sites around the world 10,000 CCUS projects are required around the world by 2070, with the global industry forecast to be worth around £100 billion per year by 2050

Hydrogen can have an important role in decarbonising sectors such as heating, transport and heavy industry The roll-out of hydrogen across Europe has the potential to reduce emissions by 800 million tonnes of CO 2 e/year by 2050 ( 19% of current emissions ) The existing gas infrastructure network can be used to support a roll-out of hydrogen

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CCUS

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HYDROGEN

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