Energy Transition Outlook 2019

UKCS installation greenhouse gas emissions

25

N₂O CH₄

CO₂

20

15

10

5

GHG Emissions (CO₂ Equivalent Million Tonnes)

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: EEMS May 2019

Decarbonising offshore oil and gas operations

CO2 accounts for the vast majority of gaseous emissions from offshore installations. Furthermore, around three quarters of these emissions are the result of power generation, as installations rely on their own produced gas for fuel in open cycle turbines. The method of power generation is now significantly more carbon intensive than electricity supplied from the onshore transmission network. The other main source of the sector’s CO2 emissions is the flaring of gas at installations. This is largely for safety reasons or on facilities there is no available route for exporting that gas into the pipeline system. Methane, amongst other gases is also emitted, particularly where gas has to be vented to avoid pressure build up. With support from OGUK, companies have initiated industry collaboration to develop and achieve stretching targets for emission reduction. This strategy will focus on a range of technologies and areas for collaboration, sharing lessons learnt including the following areas: • Benchmarking of installations and subsequent sharing of best practice. • Exploring connection to onshore electricity generation. This would allow access to lower CO2 intensity and potentially more reliable power generation. • CCUS for the sector’s own emissions that can also be made available to other sectors. Although the UKCS’ emissions performance has been improving over the last few years, in terms of emissions per barrel produced, a step change in emissions management is needed. Succeeding in progressing a world-leading, low-carbon offshore oil and gas industry will become a competitive advantage for the UK, as investors further prioritise ‘advantaged’ (i.e. low emissions intensity) barrels, and as an exportable opportunity to international basins looking to achieve similar goals.

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