Economic Report 2021 - OGUK
ECONOMIC REPORT 2021
Investing in the transition The UK’s oil and gas sector continues to offer an attractive proposition to a wide range of investors, illustrated by the more than £15 billion in transactions on the UKCS completed over the last three years, including several new entrants. Companies continue to be attracted to the UK due to the range of prospects available, access to infrastructure, competitive operating costs and a predictable regulatory regime. Similarly, the competitive energy supply chain that has been active on the UKCS for the last five decades provides innovative and well- established technologies and management to maximise efficient production. TheUK is also leading the responseby the oil and gas industry to embrace the energy transition through the ground-breaking North Sea Transition Deal, demonstrating the industry’s commitment to invest in and deliver a net-zero future at pace. In current times, investors and stakeholders are increasingly looking at a far wider range of non-financial
disclosures from businesses with respect to their alignment with environmental, social and governance (ESG) factors, and in parallel with company profitability. Through the North Sea Transition Deal, the industry is able to demonstrate the action it is taking on the UKCS to meet demanding emission reduction targets and invest in wider emissions reduction technologies that the UK will require. Performance and investment plans will be transparently monitored to ensure targets are being met and companies’ environmental and net zero objectives are aligned. It is key that the UK continues to offer a robust economic proposition for investors that aligns with investors’ expectations on ESG. This will ensure that investment across the energy sector is future-proof and consistent with the new energy landscape, providing energy security whilst unlocking future net zero projects.
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