The Oil and Gas Authority (OGA)’s interventions during 2021 have helped the industry avoid producing 970,000 tonnes of future carbon dioxide equivalent – the same as taking 500,000 cars off the road for a year.
The figures were published today in the authority’s annual report and accounts which also include:
– a decrease of 10% in CO2 emissions from offshore installations and terminals between 2019 and 2020
– a decrease of 22% in flaring volumes during 2020 – equivalent to the gas demand of 200,000 homes
– production efficiency remained at 80% for a second consecutive year, while operating costs have fallen to £11.10 per barrel
TANGIBLE PROJECTS
The OGA’s work is based on its revised strategy, which supports the UK’s net zero target, and has been followed by new emissions benchmarking and monitoring to hold industry to account.
The annual report also quotes official figures showing that oil and gas still form around three-quarters of the UK’s energy consumption in areas such as heating, transport, power generation and manufacturing products such as medicines and chemicals.
The report also stresses that the industry must play its part in the transition to net zero through its expertise, infrastructure and capital.
OGA chairman Tim Eggar added that investment was needed in platform electrification and carbon storage alongside the need for clean blue and green hydrogen and floating wind, which together could absorb 60% of the UK’s 2050 reductions.
“Actions are needed now.
“Targets are all very well but delivering on them – or better still – exceeding them is the real challenge.
“Real-life, tangible, working projects are urgently needed to demonstrate leadership and provide evidence that industry is part of the climate change solution and not the problem.
“I am confident that the industry will deliver on its commitments.”
ELECTRIFICATION
Earlier this year, the Government published the North Sea Transition Deal which includes up to £16 billion of government and industry investment, a reduction in greenhouses gases and the creation of new skilled employment.
OGA chief executive Andy Samuel added that the authority would also revise its guidance on OGA’s on its net zero programme and introduce a new supply chain stewardship expectation.
“With all the net zero work ongoing, we are also keeping a sharp focus on resource progression; there are a number of valuable field development projects in the pipeline.
“We also look forward to seeing new field developments being electrified and we’re actively supporting electrification projects in their early stages in the Central North Sea and West of Shetland.”