Oil and gas sector announces plans to halve emissions by 2030

The UK’s offshore oil and gas industry has published details about ambitions plans to halve its operational emissions over the next decade. 

Industry body Oil and Gas UK has released a report entitled The Pathway to Net Zero: Production Emissions Targets, in which it outlines targets for slashing emissions by 2030. 

Goals will be met through changes to operations and progressive reductions in flaring and venting.

It has also called for major capital investment programmes aimed at using low-carbon onshore electricity to power offshore facilities rather than gas.

The new goals build on last year's release of the North Sea industry's 'road map' to becoming net-zero by 2050.

Sector bosses have also begun discussions with the UK Government on the transformational sector deal that was promised by the Conservative party during the last general election. 

It's part of the industry's commitment to supporting the "green recovery", with calls from environmental groups in recent weeks for operators to do more to reduce their carbon footprint when the economy restarts. 

The deal comes amid the ongoing turmoil caused by the coronavirus pandemic. A lack of demand for Brent Crude has caused oil prices to tumble, resulting in job losses and project cancellations. 

OGUK Chief Executive Deirdre Michie OBE said: “The coronavirus pandemic and low oil and gas prices have had a devastating impact on the UK’s offshore oil and gas industry. Given the limited impact that the severity of the lockdown has had on global emissions, it is clearer than ever that we need a fair, inclusive, and sustainable transition towards climate targets. We need a green recovery which supports jobs, supply chain companies and energy communities.

"We remain committed to addressing the challenge of climate change, as we outlined in our Roadmap 2035 published last year. Our industry will play its part by reducing its emissions and using its skills to develop the solutions that will be needed to make a significant contribution to the UK’s overall targets.

“A transformational sector deal could help unlock the full potential of this industry to support a green recovery and we’re delighted to confirm that we are now in formal discussions about it. With a clear pathway to becoming a net zero basin by 2050 and with support from governments and regulators, we can protect domestic energy supplies, jobs and communities whilst embracing the opportunities which will come from being at the forefront of delivering a low carbon economy.”

Minister for Energy Kwasi Kwarteng said: “The offshore oil and gas sector’s commitment to halving operational emissions over the next decade is a welcome step for an industry that has a vital role to play in our energy transition in the years to come.

“The UK Government will continue to work tirelessly with all partners to deliver a dynamic Sector Deal. This will further support the industry in becoming more sustainable, as we work towards achieving net zero emissions by 2050.”

Report author and OGUK Emissions Improvement Manager Louise O’Hara Murray added: “These targets would remove over 9 million tonnes of CO2 equivalent greenhouse gas emissions from our operations over the next decade; the same as taking nearly two million cars off the road for a year. Each year we will publicly show progress against our commitments on a sector-wide basis.  

“They have been developed with industry following a detailed assessment of the measures needed to deliver them. They consider changes to operations, progressive reductions in flaring and venting and major capital investment programmes to decarbonise production operations.  

“Many of the major capital investment projects which will help our sector to decarbonise, including the powering of assets with electricity instead of hydrocarbons, the development and deployment of carbon capture and storage (CCS) and hydrogen both on and offshore, will need to be  developed at scale to help other industries accelerate their own efforts to reduce emissions.”

Sir Ian Wood, Chair of Opportunity North East, said: “ONE welcomes the publication of clear emissions reduction targets by the UK oil and gas industry today. OGUK’s Pathway to Net Zero report highlights the commitment of the sector to reduce emissions and play a significant role in creating an integrated net zero energy mix for the UK. 

“The report also underlines the need for public and private investment in step-change decarbonisation solutions and for government to create a legislative and regulatory environment that supports and accelerates action to achieve the ambitious targets for 2045 and 2050."