OGUK sees government licensing review shine a light on a changing industry

ABERDEEN - The leading representative body for the UK’s offshore oil and gas industry has embraced a UK government review into future licensing rounds as an opportunity to shine a light on how the sector is changing to support the country’s climate ambitions while still ensuring it contributes to the UK’s ongoing security of energy supply.

Speaking in response to the announced review, OGUK Chief Executive Deirdre Michie OBE called for a constructive  and open discussion about how the UK will continue to meet its energy needs while delivering consumer affordability and jobs, optimizing indigenous energy sources in a way that ensures the UK doesn’t offshore its emissions to other countries.

The industry is currently working with the UK Government on a North Sea Transition Deal which will look to harness the full potential of the sector in developing cleaner energy solutions including carbon capture usage and storage and hydrogen.

The announcement comes as the UK oil and gas industry marks a year since it published its response to climate commitments, Roadmap 2035, which identified over sixty actions required to support a fair and managed transition to a lower carbon future.

Commenting, OGUK Chief Executive Deirdre Michie OBE said “The UK offshore oil and gas industry has the essential expertise to help the UK meet its climate ambitions by 2050 while at the same time providing affordable energy for households and families, supporting jobs, and creating exciting energy jobs of the future.

“This review is an opportunity to shine a light on how our industry is changing. With commitments to halve emissions in the next decade and committed investment in exciting low carbon solutions, the changing UK oil and gas industry is stepping up to the climate change challenge.

“Throughout the coronavirus pandemic we have not stopped working, and our people have continued to work in difficult circumstances to meet as much of the UK’s oil and gas needs from domestic resources. The reality is that oil and gas will continue to be part of a diverse energy mix for years to come.

“We now need a constructive and open conversation about how our oil and gas producing country can transition fairly to a lower carbon future. Working with governments, regulators and through sensible debate, we can protect jobs and affordability while being ultimately accountable for the emissions associated with the oil and gas we use.”