Responding to the energy transition challenge

The Chairman of the Oil and Gas Authority (OGA) has said that the oil and gas industry's ‘social licence to operate’ is under serious threat and there is no scope of a second chance, adding that it must do more to help solve the challenges of climate change and the drive to net zero.

Addressing a group of senior industry leaders at a meeting of the MER UK Steering Group in Aberdeen on 15 January 2020, Tim Eggar called on industry to act much faster and go farther in reducing its carbon footprint. Ahead of the COP26 climate conference in Glasgow later this year, he suggested industry would need to develop a package of measures, including:

• The offshore industry to commit to clear measurable greenhouse gas targets, with real progress on methane.
• To show progress on carbon capture and storage (CCS), including work having started on major projects.
• Measurable progress on energy integration opportunities – for example, an electrification project.
• An acceleration of the move to ensure there is a diverse array of skills and people for the long-term energy offshore and supply industry.

He also outlined the OGA’s priority areas going forward and how the OGA will integrate the UK’s net zero ambitions across its core business.

Commenting on the announcement, Deirdre Michie, Chief Executive OGUK said: ‘We are an industry in action. Roadmap 2035: a blueprint for net zero is 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. We will continue to work closely with all industry regulators, including the OGA, to deliver a safe, sustainable and competitive industry that realises its full potential in the transition to the low carbon future we all want to see.’

For more on the energy transition and the oil and sector’s response, see Petroleum Review’s forthcoming February 2020 issue.