A new report from the UK offshore oil and gas industry’s representative body has found that the UK’s carbon emissions fell by an estimated 10.3% this year, compared to a global reduction of 5.5%.
OGUK said that these figures confirm the scale of the challenge in securing a green recovery and urged governments to act now to ensure the UK builds a homegrown transition towards a clean energy future.
The report also revealed that 85% of OGUK members throughout the supply chain expect to increase their diversification into non-oil and gas activities during the next 12 to 24 months due to the current market conditions.
OGUK’s Economic Report 2020 showed that global energy demand is expected to decrease by 5% this year, while the UK reported 12% reduction in total energy demand in the first three quarters of the year.
At the start of 2020, there were more than £35bn of capital investment opportunities identified within company plans over the next 10 years – with varying probabilities of progression.
OGUK chief executive Deirdre Michie said: “Today’s report highlights that we have a unique opportunity for the transition towards a lower-carbon future to be homegrown in this country and potentially exported across the world.
She said that OGUK continues to work closely with the UK Government on proposals for a transformational North Sea Transition Deal, “which will help unlock the full contribution the industry can make to achieving net-zero and the wider economic benefits”.
The report also showed that the UK met 61% of the demand for oil and gas from indigenous resources – almost 50% gas and 73% for oil products.
Oil and gas supply chain businesses are providing services worth around £28bn worldwide, with around 60% of this related to UK activities.
Neil Gordon, chief executive of industry body Subsea UK, added: “The supply chain needs to be at the heart of discussions with industry and government, shaping and informing the plan for how the UK can competitively develop and deliver the technology and services to support the race to net-zero, cementing the UK as a world-leader in low-carbon and creating the jobs and exports of the future.”
Graham Hollis, office senior partner for Deloitte in Aberdeen, said: “Today’s report is evidence of the strength and expertise embedded in the UK oil and gas industry and the unique opportunity the sector has to lead the global drive towards a lower-carbon future.
“Combating demand and price shocks and navigating the impact of the pandemic has shown the resilience of the sector, led by forward thinking companies who are quick to explore innovative technologies so that they can survive the crisis and thrive in the future.
“As the Economic Report shows, the sector has a pivotal role to play in the UK’s post-pandemic economic recovery and companies must work collaboratively to ensure opportunities for investment in net-zero technologies are maximised.”
