UK oil and gas industry publishes blueprint for net zero

The UK’s offshore oil and gas industry has outlined its contribution to the UK and Scottish government net zero emissions ambitions as part of a  blueprint showing what the sector could look like in the future. Roadmap to 2035: A Blueprint for net zero sets out five key themes requiring industry, government and regulator action to ensure the sector can continue to provide secure energy supply, support net-zero and remain a vital contributor to the UK economy.

The five key areas addressed in Roadmap 2035 are supporting net zero, helping meet UK energy needs, developing people and skills, driving technology and innovation and growing the economy and exports.

The roadmap includes coordinating activities to reduce emissions from the production of oil and gas, which currently accounts for 3% of UK total greenhouse gas (GHG) emissions, and understanding how the UK oil and gas industry can play a key role in developing and commercialising low carbon technologies including carbon capture, use and storage (CCUS), and hydrogen.

One of the first major industrial responses to government plans to reduce or offset carbon emissions to net zero by 2050 in the UK and 2045 in Scotland, the roadmap is the centrepiece of a flagship report published by Oil and Gas UK (OGUK) on 4 September 2019.

OGUK’s Economic Report 2019 reinforces the importance of the sector to the UK’s economy and to meeting the energy needs of consumers. It shows how the UK oil and gas industry can contribute to the transition towards net zero emissions in the UK. The report shows 75% of the UK’s current energy needs are met from oil and gas, with just over half (59%) of oil and gas demand met by domestic production. It highlights Climate Change Committee forecasts that the UK will still consume around 65mn toe/y (roughly 45% of current demand) in 2050, making carbon capture and development of hydrogen essential.

The report notes that continued collaboration between industry, government and regulators will be required to maintain the competitiveness and sustainability of the basin so that as much as possible of UK demand is met from the country’s own resources rather than imports, in parallel with efforts across all industries to reduce emissions.

Commenting, OGUK Chief Executive Deirdre Michie said: ‘Roadmap 2035 shows an industry in action with a credible plan for the future. While we don’t have all the answers to the big challenges we face, we have started work on what we know can be done…The facts outlined in our report evidence that our industry remains a vital economic asset and is uniquely positioned to help the UK meet its net zero ambitions and energy needs in the years to come. We now need a comprehensive UK energy strategy which recognises the continued role of oil and gas in a diverse energy mix and positions us to support net zero.’