Energy Transition Outlook 2019

Even though output from the UKCS will decline, investment in exploration and production of oil and gas will still be needed during the transition period. This is expected to be at the lower end of historical ranges. Similarly, as identified by the IEA and other global organisations, significant ongoing global investment in oil and gas involving hundreds of billions of dollars will be required to meet projections consistent with the Paris goals. The International Renewable Energy Agency (IRENA) estimates global investment in oil and gas production to be a total of $18 trillion out of a total global energy investment of $120 trillion between now and 2050. It is therefore important for the UK to continue to attract global investment through a competitive cost structure, stable regulatory framework and strong environmental oversight. Likewise, a healthy indigenous UK sector aligned to the net-zero commitment made by UK industry and government will help drive the investment and technological change that is required. Finally, a coordinated transition of energy production and other industrial sectors of the economy will help maintain employment opportunities in important regional locations. The Industrial Clusters programme envisaged in, for example, the government’s CCUS Roadmap6 provides the opportunities to maintain thousands of high-quality jobs in these areas and to become a global leader in low-carbon industrial technologies.

6 The UK carbon capture, usage and storage (CCUS) deployment pathway: an action plan (BEIS, 2018)

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