The revised Oil and Gas Authority (OGA) Strategy, which was laid before Parliament on 16 December 2020, has come into force today (11 February 2021).
The revised Strategy reflects the ongoing energy transition and features a range of net zero obligations on the oil and gas industry, including stepping up efforts to reduce production emissions, support carbon capture and storage (CCS) projects and unlock clean hydrogen production.
Oil and gas currently provide around 75% of UK energy consumption and government forecasts show they will remain part of the energy mix for the foreseeable future, as we transition to net zero. The OGA believes that the industry has the skills, infrastructure and capital necessary to help ensure that the net zero target is achieved.
In addition to the net zero obligation, the revised Strategy also calls on industry to work collaboratively with the supply chain and actively support CCS projects, and the OGA will monitor closely and ensure that carbon costs are considered in regulatory decisions.
The OGA is now actively implementing the revised Strategy into its work; guidance documents are being updated to help industry understand how operations may need to alter in order to achieve the new requirements.
A new stewardship expectation is also being developed to reflect the revised Strategy and its net zero target.
Further information on the revised Strategy and how it will impact on the oil and gas industry is available here.