Economic Report 2020

ECONOMIC REPORT 2020

2018

The commitment to net zero is one which industry has fully embraced, however the gap between what is currently technically feasible and commercially feasible is a challenge to be overcome. Achieving emissions reduction needs a collaborative approach across the industry, our partners in government and other key

sectors. It will require a combination of operational improvements, reductions in flaring and venting and step-change action supported by investment. As the UK transitions towards net zero, significant developments in both operations, technology, and emerging sectors such as CCUS and hydrogen will be vital.

CASE STUDY: Serica Energy

When Serica Energy took over the Bruce field in 2018, daily flare volumes were reported but not routinely scrutinised. In early 2020, Serica published its Flaring Strategy and detailed new operational procedures to reduce flaring. On Bruce’s daily production report it introduced a daily flare target which turns red when exceeded. This simple indicator has prompted much more conversation around flare volumes in offshore meetings and encouraged closer collaboration between offshore teams and onshore engineers. Serica’s strong commitment to ESG has been communicated throughout the company and the formation of a cross-discipline emissions reduction group has reinforced this message. Developing appropriate and affordable business models underpinned by stable regulatorymodels is needed to attract the investment required to drive the transition and ensure the UK maximises its opportunity to be a global leader in delivering net zero.

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