The Oil and Gas Authority (OGA) sought views on its intention to refresh its core aim, including a requirement for industry to help the government achieve the target of net zero greenhouse gas emissions by 2050. The 12 week consultation opened on 6 May and ran until 29 July 2020.
The OGA believes that maximising economic recovery of oil and gas need not be in conflict with the transition to net zero and that the industry has the skills, technology and capital to help unlock solutions required to help the UK achieve the net zero target.
However, the OGA takes the view that industry should go considerably faster and farther in reducing its own carbon footprint, or risk losing its social licence to operate.
The changes proposed in the consultation, alongside the concepts assessed in the OGA’s UKCS energy integration project, have the potential to make a significant contribution to achieving net zero; both through Carbon Capture & Storage (CCS) and through CCS plus hydrogen. Offshore renewables (wind, wave and tidal) should contribute further to the abatement required by 2050.
Official forecasts suggest that oil and gas will remain a vital part of the UK’s energy mix as we move towards net zero. This means that managing declining North Sea production to maximise value, minimising greenhouse gas emissions and reducing reliance on hydrocarbon imports are all essential.
The energy transition requires industry to make real progress in reducing its carbon footprint through emissions reductions initiatives, including electrification, and energy efficiency measures.
The OGA is continuing to work closely with government and industry to support the delivery of these measures, as well as other solutions including CCS and hydrogen.
Update June 2020. The OGA ran engagement workshops on 17 and 24 June to hear stakeholders’ early views on the OGA's consultation on the proposals to revise the MER UK Strategy. We’d like to thank attendees for sharing their feedback. The slides presented at the workshops are attached below.