Environment Report 2018

ENVIRONMENT REPORT 2018

3.6 The Role of Oil and Gas in Meeting Future Emissions Targets Climate change is a global challenge that requires a collective response with major shifts in energy efficiencies and the fuel mix to deliver a lower-carbon future. To combat the risks of climate change, the UK has set ambitious targets to reduce emissions by 80 per cent of 1990 levels by 2050 Under the Climate Change Act (2008). The ratification of the Paris Agreement in 2016 by the UK Government builds on these domestic targets, which are outlined in legislated Carbon Budgets. With the initiation of the Oil & Gas UK Energy Transition project to examine the future role of indigenous oil and gas supply, there must remain a balance between meeting GHG emission reduction targets via a measured, cost- effective approach and delivering an affordable, secure domestic supply of energy required for economic growth. The UK offshore oil and gas industry is committed to playing its part in building a sustainable industry that is progressively lowering its emission intensity. In recent years, the average CO 2 emissions per unit of production on the UKCS (known as carbon intensity) has been falling due to: a fall in oil and gas output; improved operational management; tighter regulations; the decommissioning of older, more emission-intensive installations; lower emissions from new fields with more efficient technology; and participation in the EU Emissions Trading Scheme (EU ETS). However, 2017 saw an increase in average emissions (see Figure 16). In 2017, CO 2 e emissions from UK offshore oil and gas production contributed 3 per cent of total domestic CO 2 e emissions. On average, production efficiency on existing installations continues to improve, from 60 per cent in 2012 to 74 per cent in 2017. Meanwhile, greenfield projects are integrating modern, energy-efficient technologies for power generation offshore and to reduce routine flaring altogether. The industry has implemented several operational initiatives aligned with reducing emissions such as the creation of the Production Efficiency Task Force; innovative design choices for new installations and facilities; monitoring and reporting of energy usage and GHG emissions; reducing system leakages (e.g. to flare stack); upgrading and altering equipment to maximise operational and energy efficiency; and proposed funding for the Oil & Gas Technology Centre (OGTC) to research, develop and deploy new low-carbon technologies.

26