The UK’s offshore oil and gas industry has outlined its contribution to the UK and Scottish Government net-zero ambitions as part of an ambitious blueprint showing what the sector could look like in 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.

It includes coordinating activities to reduce emissions from the production of oil and gas, which currently accounts for 3 percent of UK total greenhouse gas 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 Usage and Storage and hydrogen.

The roadmap 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. It is published following extensive engagement with over 2,500 industry stakeholders. The roadmap is the centrepiece of a flagship report published today by the leading representative body for the industry.

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 percent of the UK’s current energy needs are met from oil and gas, with just over half (59 percent) of oil and gas demand met by domestic production. It highlights Climate Change Committee forecasts that the UK will still consume around 65 million tonnes of oil equivalent per year (roughly 45 percent 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 our 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. We are ready to work with others in developing some of the new solutions the UK needs, and the Net Zero Solutions Centre is a great example of this.

“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.

“Our Economic Report 2019 shows we are already playing an active role in the transition to a more diverse energy mix, with many of our members investing in renewables, developing new technologies and bringing new solutions to market.

“Roadmap 2035 offers a blueprint for how we can continue to meet much of the UK’s oil and gas needs from domestic resources, progressively reduce associated production emissions and develop economy-wide decarbonisation technologies. With 40,000 new people needed in our industry, a quarter of whom will be in roles which don’t currently exist, it is an industry with an exciting future.

“It’s why we must continue to focus on improving the sustainability of the basin. This sector has seen a remarkable turnaround from one of the harshest declines in memory, however significant parts of the supply chain remains in a fragile condition.

“Our Economic Report 2019 shows a greater proportion of UK demand being met from domestic production, exploration and drilling activity on the increase and a continued pipeline of new projects emerging. We need to build on this investment to encourage new fields to be developed to replace those coming to the end of their life. This will ensure as much as possible of UK demand is met from our own resources.”

Business, Energy and Clean Growth Minister Kwasi Kwarteng said:

“Roadmap 2035 shows how seriously the UK’s oil and gas sector is taking its mission to decarbonise and support the transition to net zero emissions by 2050.

“The highly skilled offshore energy sector will be integral to the UK’s energy transition, developing solutions to further bolster the sector’s significant contribution to our economy.”

Paul Wheelhouse MSP Minister for Energy, Connectivity and the Islands said

“I welcome the Vision’s roadmap to 2035 as it marks a significant move by the industry to reflect the need to make the energy transition a reality. The sector can and has committed to helping Scotland and the UK achieve net zero, working with both governments, as well as industries and communities to transform our energy system.

“We are committed to achieving a net-zero economy in a way that is fair for all and to ensure a just transition. The oil and gas sector can and will, I believe, play a positive role in this transition, helping to channel its resources and innovative supply chain to design the diverse energy system we need for the future. The Industry’s Vision 2035 can be a blueprint to deliver net zero and a sustainable future for the sector. The knowledge, skills and experience of the workforce will also be of vital importance for developing and investing in low carbon technologies, such as Carbon Capture Utilisation and Storage, hydrogen and floating offshore wind projects.”

UK Government Minister Colin Clark said:

“I am pleased to see the oil and gas industry publish their blueprint for net-zero. Scotland’s oil and gas sector will play a leading role in the UK Government’s commitment to net-zero by 2050. Investing in new technologies like CCUS and hydrogen is key to unlocking the industry’s future and decarbonising the UK economy.

“Our industry is the safest in the world and the UK Government recognises this, continuing to support the sector through a £2.3 billion fiscal package and the £250 million Aberdeen City Region Deal. Improving the sustainability of oil and gas in the North East ensures the industry has years ahead of it, continuing to provide jobs and invest in Scotland’s economy.”

 

Ends

 

Notes:

A video of the roadmap can be found here. 
The report can be found here.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar 01224 577343 / ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has successfully completed a contract worth more than £2million for BP in the North Sea. The project, completed in December 2017, used Bibby Offshore’s diving support vessel Bibby Topaz to carry out inspection, repair and maintenance operations in the Rhum gas field, approximately 380 kilometres north-east of Aberdeen. Read more…

DEKRA Organisational Reliability has  announced a three year partnership with Naftna industrija Srbije (NIS), Serbia’s largest multinational energy companies, to implement a new Health and Safety strategy based on cultural change. The new, three year partnership will work to  implement the recommendations from the 2016 Diagnostic. The scope of work includes DEKRA Leadership Workshops, Frontline Worker Engagement Workshops, onsite coaching and a governance team. Read more…

Emerson, a global technology and engineering company, has completed its multi-year, $90 million (£64 million) automation project for BP’s Glen Lyon floating production, storage and offloading (FPSO) vessel west of Shetland. Read more…

Sparrows Group has been re-awarded two five-year contracts with TAQA to deliver crane operations, maintenance, rigging loft and fixed lifting inspection services to its UK Continental Shelf (UKCS) assets. Read more…

Xodus Group, the engineering and advisory consultancy is welcoming Subsea 7 as a new shareholder. Subsea 7, which will add value through its subsea expertise and experience, has agreed to acquire a 60% interest and existing shareholder, Chiyoda Corporation of Japan, will retain a 40% percent interest. Read more…

Apollo Technical Software has further digitised the offshore worker with the launch of KnowHow DiveTM, a new module in its innovative data management solution, Apollo KnowHow™. It links up data silos between subsea, topsides, inspection, fabric maintenance etc through a common tool and workflow along with real-time data harvesting for the first time. Its effective use has the potential to save the offshore industry millions of pounds through efficiency gains. Read more…

TWMA, provider of specialised drilling waste management services, has secured a six-figure contract with Decipher Energy. The three month project, which commenced in February 2018, will see TWMA provide an at source drilling waste management package at the Orlando Field in the UK northern North Sea. The company will use its EfficientC® and TCC RotoMill® technology to allow processing of the drill cuttings offshore at source. Read more…

Emerson (NYSE: EMR) and AspenTech (NASDAQ: AZPN) announced today they have teamed up to deliver asset optimisation software solutions along with global automation technologies and operational consulting services. Together, the two industry leaders will help customers optimise production and drive operational excellence. Read more…

Bruce Stuart brings with him over 30 years of commercial leadership experience and in-depth operational knowledge of the oil and gas industry.  Bruce joins Interventek from Proserv where he was VP Business Development Subsea, having previously held a seven year tenure at FMC Technologies, responsible for UK and Canada sales and marketing for their subsea products and systems. Read more…

Wood has been awarded a new contract with Bluewater to provide industrial services to the Haewene Brim floating production storage and offloading (FPSO) facility in the UK North Sea. Effective immediately, the contract is for two years with three one-year extension options, and includes the provision of rigging and scaffolding services on the facility, currently operating in the Pierce field. Read more…

AVEVA has acquired the intellectual property rights to the engineering design database and design productivity software known as EDD and PDMSi, developed by Shell International Exploration and Production Inc., a member of the Royal Dutch Shell plc group. The EDD solution tool has been developed by Shell to improve project efficiency by automating design processes, that would lead to time and cost savings. Read more…

AVEVA acquired the intellectual property rights to the engineering design database and design productivity software known as EDD and PDMSi, developed by Shell International Exploration and Production Inc., a member of the Royal Dutch Shell plc group. The EDD solution tool has been developed by Shell to improve project efficiency by automating design processes, that would lead to time and cost savings. The PDMSi application layer has been proven to reduce drawing production time by up to 85 per cent on past Shell Deepwater projects. Read more…

Designer and manufacturer of portable EX-lighting and power distributions systems – Atexor – will deliver an industry leading whitepaper at this year’s highly acclaimed HazardEx (UK) International Conference and Exhibition held on 28 February and 1 March in Cheshire.

Xodus Group is undertaking an international study on behalf of Scottish Enterprise to determine competitiveness and innovation in the Scottish subsea market and benchmark capabilities with regions across the world. Over the next 12 months, the findings will help to shape a range of projects and activities in support of Scottish Enterprise’s Subsea Engineering Action Plan. Read more…

Parkmead is delighted to announce it has significantly increased its equity in the Perth and Dolphin oil fields in the UK Central North Sea. The Perth and Dolphin fields lie at the core of Parkmead’s Greater Perth Area (“GPA”) oil hub project. The Group has increased its equity in these licences from 60.05% to 100%. Read more… 

Bureau Veritas UK, a leader in testing, inspection and certification services (TIC), is proud to announce that it has been officially certified by the Top Employers Institute for its exceptional employee offerings and HR Practices, for the sixth year running. Read more…

Working in partnership TechnipFMC’s marine operations service and Cresent have designed 4 bespoke Water Management course modules. Each module can be undertaken separately depending on the delegate’s required level of understanding or as a complete programme. The four modules have been designed to act as building blocks: starting with an awareness level understanding of potable water and then building on that knowledge with further modules. Read more…

TAQA is transforming its Eider platform and ensuring continued production from the Otter field as part of its strategy to maximise economic recovery and extend the life of its oil and gas fields in the northern North Sea. Read more…

Petrofac’s Engineering and Production Services (EPS) division has been awarded a new offshore manning services contract by Chevron North Sea Limited. The three-year award, which came into effect last week, will involve the provision of operations, maintenance and construction personnel across five of Chevron’s North Sea assets – the Captain wellhead protector platform, Captain floating production storage and offloading vessel, Alba north platform, Alba floating storage unit and the Erskine platform. Around 85 personnel currently supporting these assets will transfer to Petrofac from multiple organisations at the end of a transition period. Read more…

Oil and gas industry publish blueprint for net zero

The UK’s offshore oil and gas industry has outlined its contribution to the UK and Scottish Government net-zero ambitions as part of an ambitious blueprint showing what the sector could look like in 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.

It includes coordinating activities to reduce emissions from the production of oil and gas, which currently accounts for 3 percent of UK total greenhouse gas 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 Usage and Storage and hydrogen.

The roadmap 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. It is published following extensive engagement with over 2,500 industry stakeholders. The roadmap is the centrepiece of a flagship report published today by the leading representative body for the industry.

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 percent of the UK’s current energy needs are met from oil and gas, with just over half (59 percent) of oil and gas demand met by domestic production. It highlights Climate Change Committee forecasts that the UK will still consume around 65 million tonnes of oil equivalent per year (roughly 45 percent 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 our 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. We are ready to work with others in developing some of the new solutions the UK needs, and the Net Zero Solutions Centre is a great example of this.

“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.

“Our Economic Report 2019 shows we are already playing an active role in the transition to a more diverse energy mix, with many of our members investing in renewables, developing new technologies and bringing new solutions to market.

“Roadmap 2035 offers a blueprint for how we can continue to meet much of the UK’s oil and gas needs from domestic resources, progressively reduce associated production emissions and develop economy-wide decarbonisation technologies. With 40,000 new people needed in our industry, a quarter of whom will be in roles which don’t currently exist, it is an industry with an exciting future.

“It’s why we must continue to focus on improving the sustainability of the basin. This sector has seen a remarkable turnaround from one of the harshest declines in memory, however significant parts of the supply chain remains in a fragile condition.

“Our Economic Report 2019 shows a greater proportion of UK demand being met from domestic production, exploration and drilling activity on the increase and a continued pipeline of new projects emerging. We need to build on this investment to encourage new fields to be developed to replace those coming to the end of their life. This will ensure as much as possible of UK demand is met from our own resources.”

Business, Energy and Clean Growth Minister Kwasi Kwarteng said:

“Roadmap 2035 shows how seriously the UK’s oil and gas sector is taking its mission to decarbonise and support the transition to net zero emissions by 2050.

“The highly skilled offshore energy sector will be integral to the UK’s energy transition, developing solutions to further bolster the sector’s significant contribution to our economy.”

Paul Wheelhouse MSP Minister for Energy, Connectivity and the Islands said

“I welcome the Vision’s roadmap to 2035 as it marks a significant move by the industry to reflect the need to make the energy transition a reality. The sector can and has committed to helping Scotland and the UK achieve net zero, working with both governments, as well as industries and communities to transform our energy system.

“We are committed to achieving a net-zero economy in a way that is fair for all and to ensure a just transition. The oil and gas sector can and will, I believe, play a positive role in this transition, helping to channel its resources and innovative supply chain to design the diverse energy system we need for the future. The Industry’s Vision 2035 can be a blueprint to deliver net zero and a sustainable future for the sector. The knowledge, skills and experience of the workforce will also be of vital importance for developing and investing in low carbon technologies, such as Carbon Capture Utilisation and Storage, hydrogen and floating offshore wind projects.”

UK Government Minister Colin Clark said:

“I am pleased to see the oil and gas industry publish their blueprint for net-zero. Scotland’s oil and gas sector will play a leading role in the UK Government’s commitment to net-zero by 2050. Investing in new technologies like CCUS and hydrogen is key to unlocking the industry’s future and decarbonising the UK economy.

“Our industry is the safest in the world and the UK Government recognises this, continuing to support the sector through a £2.3 billion fiscal package and the £250 million Aberdeen City Region Deal. Improving the sustainability of oil and gas in the North East ensures the industry has years ahead of it, continuing to provide jobs and invest in Scotland’s economy.”

 

Ends

 

Notes:

A video of the roadmap can be found here. 
The report can be found here.

Issued by the Communications Team, Oil & Gas UK. Contact Communications Manager Natalie Coupar 01224 577343 / ncoupar@oilandgasuk.co.uk

Oil & Gas UK is the leading representative organisation for the UK offshore oil and gas industry. Its membership comprises oil and gas producers and contractor companies

Bibby Offshore completes multi-million-pound contract for BP North Sea

Bibby Offshore, a leading subsea services provider to the oil and gas industry, has successfully completed a contract worth more than £2million for BP in the North Sea. The project, completed in December 2017, used Bibby Offshore’s diving support vessel Bibby Topaz to carry out inspection, repair and maintenance operations in the Rhum gas field, approximately 380 kilometres north-east of Aberdeen. Read more…

DEKRA Organisational Reliability chose to help improve safety culture at multinational Serbian energy company

DEKRA Organisational Reliability has  announced a three year partnership with Naftna industrija Srbije (NIS), Serbia’s largest multinational energy companies, to implement a new Health and Safety strategy based on cultural change. The new, three year partnership will work to  implement the recommendations from the 2016 Diagnostic. The scope of work includes DEKRA Leadership Workshops, Frontline Worker Engagement Workshops, onsite coaching and a governance team. Read more…

Emerson completes £64 million project for BP North Sea

Emerson, a global technology and engineering company, has completed its multi-year, $90 million (£64 million) automation project for BP’s Glen Lyon floating production, storage and offloading (FPSO) vessel west of Shetland. Read more…

Sparrows Group re-awarded two five-year contracts from TAQA

Sparrows Group has been re-awarded two five-year contracts with TAQA to deliver crane operations, maintenance, rigging loft and fixed lifting inspection services to its UK Continental Shelf (UKCS) assets. Read more…

Xodus Group welcomes Subsea 7 as a new shareholder

Xodus Group, the engineering and advisory consultancy is welcoming Subsea 7 as a new shareholder. Subsea 7, which will add value through its subsea expertise and experience, has agreed to acquire a 60% interest and existing shareholder, Chiyoda Corporation of Japan, will retain a 40% percent interest. Read more…

Apollo KnowHow™ leads the way offshore

Apollo Technical Software has further digitised the offshore worker with the launch of KnowHow DiveTM, a new module in its innovative data management solution, Apollo KnowHow™. It links up data silos between subsea, topsides, inspection, fabric maintenance etc through a common tool and workflow along with real-time data harvesting for the first time. Its effective use has the potential to save the offshore industry millions of pounds through efficiency gains. Read more…

TWMA secures contract with AGR and Decipher Energy

TWMA, provider of specialised drilling waste management services, has secured a six-figure contract with Decipher Energy. The three month project, which commenced in February 2018, will see TWMA provide an at source drilling waste management package at the Orlando Field in the UK northern North Sea. The company will use its EfficientC® and TCC RotoMill® technology to allow processing of the drill cuttings offshore at source. Read more…

Emerson and Aspentech form alliance to deliver digital technologies

Emerson (NYSE: EMR) and AspenTech (NASDAQ: AZPN) announced today they have teamed up to deliver asset optimisation software solutions along with global automation technologies and operational consulting services. Together, the two industry leaders will help customers optimise production and drive operational excellence. Read more…

Interventek Subsea Engineering is delighted to announce the appointment of Bruce Stuart to the role of Sales and Business Development Director

Bruce Stuart brings with him over 30 years of commercial leadership experience and in-depth operational knowledge of the oil and gas industry.  Bruce joins Interventek from Proserv where he was VP Business Development Subsea, having previously held a seven year tenure at FMC Technologies, responsible for UK and Canada sales and marketing for their subsea products and systems. Read more…

Wood secures new North Sea industrial services contract

Wood has been awarded a new contract with Bluewater to provide industrial services to the Haewene Brim floating production storage and offloading (FPSO) facility in the UK North Sea. Effective immediately, the contract is for two years with three one-year extension options, and includes the provision of rigging and scaffolding services on the facility, currently operating in the Pierce field. Read more…

AVEVA acquires rights to Shell’s engineering design and productivity software

AVEVA has acquired the intellectual property rights to the engineering design database and design productivity software known as EDD and PDMSi, developed by Shell International Exploration and Production Inc., a member of the Royal Dutch Shell plc group. The EDD solution tool has been developed by Shell to improve project efficiency by automating design processes, that would lead to time and cost savings. Read more…

AVEVA acquires rights to Shell’s engineering design and productivity software

AVEVA acquired the intellectual property rights to the engineering design database and design productivity software known as EDD and PDMSi, developed by Shell International Exploration and Production Inc., a member of the Royal Dutch Shell plc group. The EDD solution tool has been developed by Shell to improve project efficiency by automating design processes, that would lead to time and cost savings. The PDMSi application layer has been proven to reduce drawing production time by up to 85 per cent on past Shell Deepwater projects. Read more…

Atexor to deliver paper at renowned industry event

Designer and manufacturer of portable EX-lighting and power distributions systems – Atexor – will deliver an industry leading whitepaper at this year’s highly acclaimed HazardEx (UK) International Conference and Exhibition held on 28 February and 1 March in Cheshire.

Xodus to deliver international study to benchmark Scottish subsea capabilities

Xodus Group is undertaking an international study on behalf of Scottish Enterprise to determine competitiveness and innovation in the Scottish subsea market and benchmark capabilities with regions across the world. Over the next 12 months, the findings will help to shape a range of projects and activities in support of Scottish Enterprise’s Subsea Engineering Action Plan. Read more…

Parkmead increases stake in Perth and Dolphin oil fields and signs agreement with Nexen petroleum to study potential tie-back

Parkmead is delighted to announce it has significantly increased its equity in the Perth and Dolphin oil fields in the UK Central North Sea. The Perth and Dolphin fields lie at the core of Parkmead’s Greater Perth Area (“GPA”) oil hub project. The Group has increased its equity in these licences from 60.05% to 100%. Read more… 

Bureau Veritas acknowledged as top UK employer for sixth consecutive year

Bureau Veritas UK, a leader in testing, inspection and certification services (TIC), is proud to announce that it has been officially certified by the Top Employers Institute for its exceptional employee offerings and HR Practices, for the sixth year running. Read more…

Cresent and TechnipFMC create new Water Management e-learning suite

Working in partnership TechnipFMC’s marine operations service and Cresent have designed 4 bespoke Water Management course modules. Each module can be undertaken separately depending on the delegate’s required level of understanding or as a complete programme. The four modules have been designed to act as building blocks: starting with an awareness level understanding of potable water and then building on that knowledge with further modules. Read more…

TAQA achieves milestone in extending northern North Sea field life

TAQA is transforming its Eider platform and ensuring continued production from the Otter field as part of its strategy to maximise economic recovery and extend the life of its oil and gas fields in the northern North Sea. Read more…

Petrofac secures key north sea contract

Petrofac’s Engineering and Production Services (EPS) division has been awarded a new offshore manning services contract by Chevron North Sea Limited. The three-year award, which came into effect last week, will involve the provision of operations, maintenance and construction personnel across five of Chevron’s North Sea assets – the Captain wellhead protector platform, Captain floating production storage and offloading vessel, Alba north platform, Alba floating storage unit and the Erskine platform. Around 85 personnel currently supporting these assets will transfer to Petrofac from multiple organisations at the end of a transition period. Read more…