Commenting on the current concerns regarding coronavirus in the UK, Trevor Stapleton, OGUK’s HSE director, said:

“We’re already working with our members to share official advice on coronavirus (Covid-19) from the relevant bodies and will continue to work across the sector to ensure the health of the people in our industry. This sector is well versed in managing risk on complex safety and health matters, with robust processes and arrangements in place to ensure effective prevention measures and response. In addition to following the advice from health bodies and applying relevant procedures, individual operators will also decide further arrangements relevant to their specific needs, including travel and health advice. OGUK remains in regular contact with the relevant authorities to understand any further industry specific advice.”

 

Supply chain companies keen to be among the first to learn about business opportunities will benefit from advance information on major oil and gas projects by participating in OGUK’s Share Fair in Aberdeen on March 24.

As the leading representative body for the UK’s offshore oil and gas industry, OGUK’s popular business development event supports the growth of a resilient, competitive and diverse supply chain. This ambition combined with a drive to increase exports and grow the economy, is a key theme in the industry’s Roadmap 2035, which sets out a blueprint to deliver a net-zero oil and gas basin.

Matt Abraham, OGUK’s supply chain director, said:

“Share Fair is one of OGUK’s flagship events that focuses on promoting early engagement between suppliers and potential clients. This one-day event is an invaluable opportunity for suppliers to bring innovation, new solutions and fresh ideas to the attention of operator and major contractor companies planning contracts for future projects.”

Four different aspects of business development activities will be on offer at Share Fair. These include the highly popular one-to-one business meetings booked in advance with key decision-makers; major purchaser companies’ presentations of project overviews and anticipated contract opportunities and exhibition space where informal discussions with the wider supply chain community can take place.

Major purchaser companies who’ve already signed up to share their forward plans include BP, Chrysaor, CNOOC International, Dana Petroleum, Neptune Energy, Repsol Sinopec Resources UK Limited, Spirit Energy and TOTAL E&P UK Limited.

This year also sees the launch of a new format enabling suppliers to pitch new ideas focused on addressing key challenges in the sector. These sessions will be offered to OGUK members only and submissions which will be requested in advance of the event

Efforts by the sector to support decarbonisation, improve business competitiveness and develop skills for the future will be explored at OGUK’s annual industry conference in Aberdeen on Wednesday 3 June.

Nearly 500 delegates are expected to attend the conference, titled “Getting to Net Zero – Roadmap 2035” and will consider the progress being made as well as the challenges that are out there if industry is to deliver on its commitment to Roadmap 2035 that it published last year..

Coming six months ahead of the COP 26 conference to be held in Glasgow this year, the flagship industry gathering will consider the continued importance of the UK’s oil and gas industry as the UK and Scotland gears up to meet its climate ambitions.

Focusing on the sixty actions outlined in the five key themes of the sector’s Roadmap 2035: a blueprint tonet zero, delegates will hear from leading industry speakers on:

  • Deepening supply chain excellence
  • Strengthening industry competitiveness
  • Delivering a net zero basin
  • Driving technology and innovation
  • Developing skills, behaviours and culture

Launching the 2020 conference today, OGUK Chief Executive Deirdre Michie said:

“With COP26 on the horizon, our 2020 conference is set to be an important milestone for the sector as we look to champion, challenge and consider our efforts in the transition to a low carbon future.

“The conference programme and exhibition will showcase how we are truly an industry in action to develop solutions, providing the energy the UK needs within the context of ever reducing emissions. The conference will provide a key platform to demonstrate how the challenge is being embraced as an opportunity by companies across the UK.

“This is a valuable event for anyone interested in the UK’s offshore oil and gas industry to understand the changing business landscape and the opportunities it could bring to businesses, jobs, people and economies.”

Ends

The need for improved digitalisation across North Sea operations and the critical role of data in delivering Roadmap 2035, the UK oil and gas industry’s blueprint for net zero, will come under the spotlight at OGUK’s Data and Digital Day on Tuesday 25 February 2020 at The Chester Hotel, Aberdeen.

The inaugural event, chaired by Dr Daniel Brown, Executive Director of Common Data Access (CDA), a wholly owned subsidiary of OGUK, boasts a packed agenda with guest speakers lined up to outline the fundamental role of data and digital in enabling a competitive industry that realises its full potential within the energy transition.

Dr Brown said:

“I am delighted to host OGUK’s first data and digital day. Our impressive line-up of expert speakers will talk delegates through the digital journey of the North Sea as well as discuss the current digital themes in the sector, from data from drones to subsurface data science.

“We will also take a closer look at the role digital can play in improving the cost effectiveness of brown-field developments, with the ultimate aim of deferring decommissioning, and optimising economic recovery of the UK’s oil and gas reserves. With presentations touching on the full E&P lifecycle, we aim to highlight how digital capabilities are core to a competitive UK industry, that will continue to meet UK energy needs while earning our place in the low carbon economy.

“I hope those attending will gain a new appreciation of the range of opportunities that digitalisation can offer businesses and the industry more broadly as we look to deliver Roadmap 2035: our blueprint for net zero.”

Speakers include:

• Maja Kildedal, Head of Innovation and Improvements, Equinor UK
• David Lecore, Senior Compliance Manager, OGA
• Chris Frost, Data Analytics Lead, DataCo Global
• Adrien Bisset, Regional Manager Europe, Belmont Technology Inc
• Stuart Beatty, Managing Director, Kestrel Group
• Steve Aiken, Founder, Intelligent Plant
• Esther Diederen, Digital Transformation Lead, Spirit Energy

-Ends –

The leading representative body for the UK’s offshore oil and gas industry today outlined the details of its response to UK and Scottish Government net zero commitments in a keynote speech delivered by OGUK Chief Executive Deirdre Michie OBE.

Speaking to an audience of politicians, policymakers and campaign groups in Edinburgh, Deirdre Michie said:

Good afternoon everyone and thank you for coming today.

As we all know, our country and much of the world is currently engaged in an increasingly polarised debate about climate change,

It’s passionate, important and yes – urgent.

I’ve come to you today to say that the UK’s offshore oil and gas industry is not shying away from the climate conversation but embracing it,

More than this, I want to put forward our specific proposals for the transition to the lower carbon energy future we all want to see,

It was after all Abraham Lincoln who said the best way to predict the future is to create it,

So, I’m pleased you have all been able to join us and look forward to your thoughts and reflections,

Many of you will know that OGUK’s role is to inform, engage and champion the 400 plus members operating in the UK Continental Shelf – often referred to as the North Sea,

And while this term might be convenient it is actually incorrect as it ignores the East Irish Sea and the vast frontier region in the Atlantic Ocean west of Shetland,

It is a neat – if rather dull – illustration of the need for this technical and complex but critical industry to better inform the debate with facts and tangible examples,

Facts need to be the foundation of our understanding,

Because that is what will enable us to find solutions.

And before I go on, there should be no doubt: this industry isn’t talking about what is and isn’t climate change anymore.

The facts are that the climate is changing, and we must all change if we are to protect our planet for future generations,

It will require constructive, collective and coordinated action to decarbonise a largely fossil fuel-based society which has, in relatively few years, helped to dramatically improve the living standards, health outcomes and quality of life that many of us so freely enjoy today,

But we should also be clear that the need for change also comes at a time when global energy demand is forecast to grow by up to 30 percent by 2050.

And while all industries, businesses and people need to think about what they can each do,

Our industry needs to be generous in deploying our skills, infrastructure and expertise to help find those solutions.

And we are already stepping up to the challenge.

We are an industry capable of doing big things in remarkable ways,

A capability we can – and want to – apply to the climate change challenge.

Here in Scotland, and across the UK, this industry has and continues to sustain hundreds of thousands of jobs, currently over 270,000 as per our workforce report last year.

That’s about one in every 125 employed people in the UK, or 1 in 25 in Scotland.

We’ve contributed over £350bn in production taxes alone, and more from corporation tax and Pay As You Earn as well as billions of pounds in terms of capital spend and running costs invested over the years.

Importantly, this indigenous industry has supported an affordable and secure domestic supply of oil and gas, which remains fundamental to so many of the products and fuel that we need for our everyday lives.

While we continue to emerge from one of the toughest downturns in our history and are by no means out of the woods yet, with real pressures remaining on the supply chain, it is through this incredibly challenging time that we have demonstrated our ability to transform and adapt, delivering a reputation for efficiency and competitiveness,

Operating cost reductions are being sustained and expected to remain around $15-16 per barrel this year.

And we continue to deliver safely and efficiently the day job of exploring, developing, producing and decommissioning.

We are also in action in terms of responding to the challenges of climate change,

You only have to go to Orkney, Glasgow and here in Edinburgh and visit any of our members working in your community to know that this is a challenge we are taking seriously.

And I would encourage you to do this, and to see it first-hand, some of the great work that is going on.

Stepping up to reduce carbon emissions to net zero by 2050 in the UK and by 2045 in Scotland is also an opportunity for the UK’s oil and gas industry to shine in a competitive global market.

Sustaining jobs, contributing to public services through taxation, providing secure energy supply and diversifying as we help to find solutions.

The Scottish Government has made clear that it supports a sustainable, fair and inclusive transition,

And I know the UK Government is taking a similar approach,

These are important principles which say a lot about the kind of transition Scotland wants to see.

First – it means planning for a transition which ensures people in Scotland continue to enjoy affordable and low carbon energy,

Second – this transition will deliver opportunities for the people working in the industry today as it evolves in the coming decades,

Third – the transition must deliver sustainable and enduring change,

While I welcome calls to “do more” and at pace,

We now need to move the debate on from talking about the need to act, to demonstrating what we are doing to act,

We have a plan – Roadmap 2035 – which offers a blueprint for net zero,

It is one of the first industrial responses to the UK and Scottish governments net zero commitments.

It aims to enable a safe, sustainable and competitive oil and gas industry supporting the UK’s energy needs and its transition to a net zero future,

These aspects are not mutually exclusive but inextricably linked.

Developed through over 5000 engagements with a range of stakeholders, Roadmap 2035 has been welcomed by both governments and energy ministers.

It sets out 60 actions across five key areas,

And today I can confirm that OGUK has convened an industry-wide group of company leaders and young professionals to coordinate efforts, identify gaps and drive action in pursuit of what is a truly challenging task but also a transformational opportunity,

So, to the first group of actions – our support for net zero

We will do this by reducing emissions from the operational production of oil and gas,

And through supporting other heavy emitting sectors to achieve net zero through our skills, technologies and infrastructure,

But what does this mean?

Firstly – in terms of our own production emissions, we will be a net zero oil and gas basin by 2050,

Reducing emissions from 14 million tonnes – currently three percent of the UK’s total greenhouse gas emissions – to 0.5mt – in line with the Climate Change Committee outlook,

It will require significant investment, new technology and close working with the renewables sector in Scotland and across the UK

I’m pleased to announce that we are developing targets for emissions reduction, and we will soon publish a detailed action plan in support of this — this is an industry in action.

In December last year the OGA – our industry regulator – published the interim findings of the first phase of its Energy Integration Project,

Working with BEIS, the Crown Estate and Ofgem, this important report offers a good starting point as to how we begin to bring key carbon reduction concepts to life,

Reducing emissions on oil and gas installations by using low carbon electricity including directly from offshore wind farms to replace offshore power generation from gas and diesel,

It takes me on to our second net zero commitment.

We will support the development of CCUS and other low carbon tech at scale,

The Climate Change Committee estimates that up to 175m tonnes of C02 each year will need to be captured and stored in the UK by 2050.

And that’s even if the UK delivers against every cross-sectoral recommendation in their initial report,

Indeed – CCUS is required in all decarbonisation scenarios.

Globally, some 10,000 projects will be needed,

An industry forecast to be worth around £100bn each year by 2050,

This is not only a necessary technology to meet our climate goals, it is therefore also a potential opportunity for Scotland and a diversifying energy industry.

This sector stands ready to play its part.

Assisting in the development of the commercial business models that are needed to help deliver CCUS clusters, hydrogen opportunities and the decarbonisation of offshore platforms at scale,

We are putting forward our skills, capabilities, assets and knowledge,

And working with governments and regulators to clarify policies and regulations on CCUS and hydrogen,

including improving the understanding of what is required to repurpose existing oil and gas assets for use in the low carbon world,

The CCS charter signed between the Scottish Government and industry demonstrates our commitment,

We are looking to work with governments and regulators to progress the five CCUS projects across the UK which now need to move at pace into the next phase,

One of which is the North East’s £224m Acorn project.

Expected now to be operational by 2024,

And with the potential to store 16.2m tonnes of carbon per year,

It would be good progress, but still only a fraction of what is required.

And on hydrogen,

Much more will have to be done to explore the full opportunity of this potentially disruptive player in the clean energy mix,

Reports by Swansea and Keel Universities found up to 30 percent of the UK’s gas supply can be replaced with hydrogen without needing to modify people’s appliances,

With currently 75 percent of the UK’s heating demand in buildings being met by natural gas

It shows the scale of the opportunity,

And the analysis from the International Energy Agency showing that the cost of producing hydrogen from renewable electricity could fall 30% by 2030 as a result of declining costs of renewables and the scaling up of hydrogen production helps us to begin to see what a truly transitional and transformational approach could look like,

Blue hydrogen derived from gas will need to compete alongside green hydrogen made from renewables – but both will be needed if we are to match the energy needs I referenced earlier on,

So, combining with Carbon Capture and Storage, hydrogen from natural gas could cut emissions, alongside efforts to reduce the cost of producing hydrogen from clean energy,

You can see why it matters that we do this right,

The developing hydrogen economy could also bring far-reaching benefits across Scotland,

For example, in Orkney, where a consortium led by the OGTC alongside universities and oil companies are looking to create a test centre at Flotta oil terminal for trialling these different types of technologies for use on offshore platforms,

So today we urge the UK and Scottish governments to continue to think about the full system changes from the production of energy to its use in our homes and businesses,

To recognise that this industry can help provide solutions which unlock the inclusive, fair and sustainable transition we all want to see,

And we call for a comprehensive UK energy strategy from the UK Government, to be reflected in their imminent white paper.

The Committee on Climate Change report also recognised that by 2050, oil and gas will continue to form part of a diverse energy mix,

Albeit at lower levels, roughly about a third of what it is today,

That’s because the CCC forecast that oil and gas will still be needed by those sectors especially difficult to decarbonise,

Sectors such as heavy industry and aviation, and of course its continued use in many industrial and chemical processes,

Whether its pharmaceuticals, or in producing the composite materials which, used sustainably, will continue to be critical in our daily lives,

So, I also consider it’s important we deliver as much of this demand from domestic resources – a point I’ll come back to shortly.

Meeting net zero is only the first of five themes outlined in what you can see truly is a comprehensive roadmap,

With our 2nd theme of driving technology and innovation, we will spur a net zero technology revolution, adding some £10bn in economic value to the UK through technology and innovation,

Through work being championed by the OGTC, that has already launched a net zero solutions centre in support of this ambition,

And our 3rd theme, of developing people and skills,

By 2035 we will support some 130,000 jobs,

Compared to just over 150,000 direct and indirect jobs we support today,

This will actually require us to attract 40,000 new people, a quarter of whom will be in new roles, many of which don’t exist yet, to cater for technology developments as well as the expected natural attrition from the industry through retirement,

This is being driven by the industry skills body OPITO and their innovative work through the Energy Skills Alliance to support the development of a multi-skilled energy workforce that is flexible, dynamic and technologically enabled,

In growing the economy and exports, our 4th theme,

We’re looking to double exports from a diversifying energy sector to £20bn each year,

Working with governments to deepen our sector’s understanding of international markets and ensure our experience is utilised globally and in different sectors,

And those of you who joined the excellent cross-party group held with Scottish Renewables last week will have heard how diversification in the supply chain can open the door to more international opportunities,

The final theme is on meeting the UK’s need for energy and industrial products.

I spoke earlier about the requirement to meet as much of the UK’s energy needs from domestic resources, as per the CCC report and its focus on energy sovereignty,

And their forecast that during the transition and beyond, there remains a need for oil and gas.

Let’s be clear here – the premature shut down of this industry in the UK would do nothing to impact consumption,

Those needs would instead be met from increasing the amount of oil and gas imported from across the world,

But it would also mean we realise none of the benefits this indigenous industry brings in jobs, taxation and security of supply,

Nor would it enable control over environmental governance and standards.

So, what might seem an easy and quick fix, is instead simply shifting the problem to other countries.

Which is sometimes referred to as carbon offshoring,

This isn’t fair, inclusive or sustainable, it’s actually irresponsible.

It’s an example of a transition which helps get to the same destination, but at an unnecessary cost,

Leading to unintended consequences because the changes aren’t inclusive or supported by an effective, integrated and affordable energy system,

This is not the path we need to go down, and it’s why today we are coming to you with our plan,

Building on their contribution to this great industry, we can take Aberdeen, Glasgow, Shetland, Edinburgh and everywhere in between on the journey,

We can equip people with the skills and remove barriers so that they can enjoy rewarding energy careers for decades to come,

Meaning that by 2045 in Scotland –  we will have delivered a truly fair, inclusive and sustainable transition to a low carbon future where our transformed and thriving industry is part of the solution,

It’s an exciting proposition.

One which will underpin our calls for a transformational sector deal which we will look to announce later this year,

Which is why today my ask of you all is to consider the Roadmap,

To hear out the facts and then make your call as to the role of this industry going forward.

As we look to the future, I have no doubt that it will be our shared understanding, informed by facts,

And an inclusive approach, that will enable our delivery of the net zero challenge,

Yes, we need vigorous debate, but the so-called cancel culture Obama spoke about,

The culture which says the people in our industry don’t have the right to a voice,

Undermines the fundamental principles of the inclusive, fair and sustainable transition we all want to see.

We are here and we want to help,

And we want to be a positive force in this transition,

As Jonathan Foer notes in his excellent book ‘We are the Weather’,

Collective action is the best way to save our home and way of life.

So, let’s work together, because we can.

Thank you.


The Chairman of the Oil and Gas Authority has challenged the UK oil and gas sector to respond to the energy transition. Commenting, 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.”

Ends

Commenting on protests outside oil and gas offices in Aberdeen today, OGUK Stakeholder & Communications Director Gareth Wynn said:

“Climate change will be solved by practical actions not conspiracy theories and stunts. It’s disappointing that this group is choosing to disrupt the normal working day of people in this industry, causing alarm rather than engage in meaningful discussion with key decision makers.

“This industry, through our Roadmap 2035, is committed to delivering an inclusive, fair and sustainable transition to a low carbon and diverse energy mix. Again, we welcome those who are willing to take part in meaningful and solutions-focused discussions. Our industry is packed full of people with the engineering and environmental knowledge and skills to play a key part in reducing emissions and we are already taking action.”

The leading representative body for the UK offshore oil and gas industry has kicked off the new year with ambitious plans to champion the sector as part of a diverse energy mix.

Two new directors will join OGUK’s leadership team under the continued direction of Chief Executive Officer Deirdre Michie OBE.

Katy Heidenreich

Katy Heidenreich

Trevor Stapleton is announced as OGUK’s new Health, Safety and Environment (HSE) director while Katy Heidenreich is confirmed as Operations director, both commencing their new roles on 3 February 2020.

The two new directors join a reshaped leadership team to support industry in its delivery of Roadmap 2035: a blueprint for net zero.

Matt Abraham will take on a more focused brief as Supply Chain and Exports director, directing his extensive experience in contractor companies to help grow exports and support a resilient, competitive and diverse supply chain. Meanwhile. Mike Tholen will become OGUK’s Sustainability director, using his own deep experience in the industry to help drive  action to deliver a net zero basin,  from the operational production of oil and gas and assisting the UK in reducing its total GHG emissions through to adoption of technologies including Carbon Capture Usage and Storage.

Graham Elgie continues as OGUK’s Finance and Corporate Services director and Gareth Wynn as OGUK’s Stakeholder and Communications director.

Commenting, OGUK Chief Executive Deirdre Michie said:

“2020 is synonymous with perfect vision and we are wasting no time in getting to work delivering industry’s ambitious plans for the future outlined in Roadmap 2035: a blueprint for net zero.

“I’m delighted to announce these changes to our leadership team which will enable us to even better support companies and to help drive  action as we work to inform, engage and advocate the importance of this industry as part of a diverse energy mix.

Trevor Stapleton

Trevor Stapleton

“We have a challenging but exciting year ahead of us as we work to support all our members that operate in or provide services to the UK offshore energy industry. With continued volatility in oil markets our focus remains on enabling a safe and competitive industry that delivers to its full potential within the energy transition, ensuring the North Sea remains an internationally attractive place to do business.

“Katy and Trevor each bring an incredible amount of experience and are highly regarded by their peers. Their strategic insight will be critical as we gear up to deliver our blueprint for net zero, demonstrating the practical steps companies are taking to reduce emissions, meet UK energy needs and develop our people and skills for the future.

“This industry has a positive role to play in providing solutions to the UK’s net zero challenge and we are already in action with our Roadmap. Leading from the front, OGUK is proud to champion our dynamic and diverse industry and we look forward to continuing to work with all of our stakeholders in the year ahead.”

Commenting on news that protestors have boarded a drilling rig in Dundee harbour, OGUK Chief Executive Deirdre Michie said:

“This is a dangerous and short-sighted stunt which does absolutely nothing to help provide the solutions which will be required to meaningfully deliver net zero emissions by 2045 in Scotland.

“Worse than this, we know that the premature shutdown of the North Sea would only increase reliance on oil and gas imported from across the world where we have no control over emissions and with none of the substantial benefits our indigenous industry brings with its thousands of skilled jobs, the funding of public services and energy security.

“This stunt puts both the activists and offshore workforce at risk and our industry – with its focus on safe operations – will not condone these actions.

“If Extinction Rebellion is serious about net zero then it needs to become serious about what will be required and recognise the critical contribution our industry could make if it realises its full potential to support the transition to a lower carbon and more diverse energy mix.

“Our industry is part of the solution and Roadmap 2035: a blueprint for net zero outlines our plans to reduce emissions from the operational production of oil and gas while supporting other heavy emitting sectors to reduce emissions through low carbon technologies including Carbon Capture Usage and Storage and hydrogen. This is an industry in action, and we are committed to working with anyone to find solutions and deliver the low carbon future we all want to see.”

Ends

The leading representative body for the UK’s offshore oil and gas industry has underlined its commitment to developing the technical solutions required to help meet the UK and Scotland’s net zero ambitions. It comes as two key reports on plans to reduce emissions are published today.

Industry regulator the Oil and Gas Authority (OGA) today published the interim findings of its Energy Integration report detailing how the sector is working to reduce emissions from the operational production of oil and gas through platform electrification. The report also outlines how the sector can support the decarbonisation of other heavy industries through carbon capture, usage and storage, and hydrogen.

The Climate Change Committee today also published its 2019 progress report to the Scottish Parliament which recommends both the UK and Scottish governments work more closely together to make the best use of devolved and reserved policy levers in key areas where responsibilities are split. This includes the future of heating, electric vehicles and low-carbon infrastructure.

Commenting, OGUK Upstream Policy Director Mike Tholen said:

“Today we have two big reports which both recognise the contribution the oil and gas industry can make to the UK and Scotland’s net zero ambitions.

“Partnership working between industries, governments and regulators will be critical to the scale of our success. As we look to a new year, OGUK will continue to seek support for industry’s Roadmap to 2035: a blueprint for net zero.

“Enabling a safe and competitive industry that realises its full potential in the energy transition can only be good news for the jobs, communities and climate aspirations we support.

“From reducing emissions from the operational production of oil and gas through electrifying offshore platforms, to helping other heavy emitting sectors to decarbonise by developing carbon capture, usage and storage technologies at scale, our industry has the skills, capabilities and infrastructure to play a key role in developing solutions.”

Read about Roadmap 2035 and our Energy Transition Outlook report

Commenting on the General Election results, OGUK Chief Executive Deirdre Michie said:

“We look forward to continuing our constructive working with the Prime Minister and the UK Government as we work to ensure a safe and competitive industry which realises a successful future through the energy transition and a Sector Deal. We welcome all the new members of Parliament and thank outgoing members for their support for this critical industry.

“As we go into the new year our priority will be to ensure and reinforce recognition of the positive role our industry is playing in helping to achieve net zero emissions alongside providing a major economic contribution and a big part of our energy security.”

Ends

A comprehensive report into the changing energy landscape has called for urgent action to progress low carbon technologies critical to the UK and Scottish Government’s net zero ambitions.

It says government and industry must work together to progress to the next stage five key projects across the UK which look to capture, transport and store carbon dioxide from heavy emitting industrial processes including power plants. It also calls for joint action to increase the potential for low carbon hydrogen to be used as a fuel to heat homes and power cars.

The policy recommendations are published today by the leading representative body for the oil and gas sector, OGUK, in its second Energy Transition Outlook Report. The document considers the changing energy landscape in the UK and outlines progress achieved by the UK’s oil and gas sector over the past year to provide industry and economy-wide solutions towards reducing emissions.

However, the report authors warn that the sector will need to earn its position in the changing energy world, with rapid action required to ensure the sector transforms over the next 30 years while continuing to meet as much of the UK’s oil and gas needs from domestic resources.

The report findings show:

  • The UK’s oil and gas industry is in a unique position to lead in the development of Carbon Capture Usage and Storage, with 5 projects situated across the country currently being explored
  • UK energy sector investment will need to double in order to achieve a decarbonised economy

Commenting on the report, OGUK Chief Executive Deirdre Michie said:

“Our Energy Transition Outlook report shows the changing energy landscape in the UK and the opportunities and challenges it presents all industries, businesses and people, our own included.

“With the launch of Roadmap 2035: a blueprint for net zero, we were one of the first industrial sectors to set out credible plans to support the UK and Scottish Government net zero emissions. Yet the oil and gas sector will have to earn its position in this new energy world, cutting its own emissions and working with governments and regulators to progress the five CCUS projects which now need to move forward into the next phase and developing hydrogen.

“As our report shows, there is lots of work to be done in a huge market which is only getting bigger as global demand for energy continues to grow. The Climate Change Committee report published at the beginning of this year noted CCUS was critical to our net zero ambitions. Our challenge, working with others including the OGTC’s Net Zero Solutions Centre, is to realise CCUS and other low carbon technologies as an opportunity for British businesses.”

 

 

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Prominent figures from across the North Sea’s oil and gas industry will come together on 3 December to launch a vital piece of industry research and to discuss practical steps that are being taken by industry to help deliver the energy transition.

Will Webster, report author and energy policy manager OGUK, will present the findings of OGUK’s key report “Energy Transition Outlook 2019” at the final OGUK business breakfast of the year, sponsored by Deloitte and hosted at the P&J Live. The report outlines what the industry has achieved over the last year and explores in detail what is now required to move the UK closer to the government’s net-zero objective.

Will is joined by a panel of distinguished industry leaders, including Ariel Flores, Regional President, BP North Sea, Steve Phimister, VP UK Upstream, Shell U.K. Limited and Troy Stewart, Head of Energy Industries UK and Ireland, ABB who will give their view on how industry is tackling the challenges and opportunities presented by the energy transition. Joining them for an interactive panel session will be Myrtle Dawes, Solution Centre Director at The Oil & Gas Technology Centre, giving delegates the opportunity to have their questions answered.

Deirdre Michie, Chief Executive OGUK and panel chair, said:

“Our industry is renowned for its people, skills and capacity to solve problems and find solutions. This is a powerful and positive combination that is already being deployed to ensure the North Sea plays its part in the energy transition. Alongside delivering the energy we need, the sector is already focussed on lowering its own emissions and helping deliver a net-zero economy in the decades to come and our flagship report puts a spotlight on the important role our industry needs to take.

Graham Hollis, Aberdeen office senior partner for event sponsor Deloitte, said:

“It’s great to see this important topic discussed at the final OGUK business breakfast this year. Since the Energy Transition report was launched last December, companies and bodies from across the sector have united to take bold steps towards delivering a net-zero oil and gas basin. It is important to reflect on these and celebrate the industry’s collective drive to achieve the UK and Scottish Government’s net zero carbon targets.

“Looking to the future, the expert workforce and dynamic infrastructure of the oil and gas industry is uniquely placed to pioneer new projects such as carbon capture and storage, and it will be great to see so many key players come together to discuss the opportunities and challenges the industry faces.”

 

The UK’s decommissioning sector’s growing competitiveness is revealed in the 2019 Decommissioning Insight report launched by OGUK today at the Offshore Decommissioning Conference held jointly with Decom North Sea. Now in its tenth year of publication, the report forecasts the UK’s decommissioning activity and expenditure over the next decade,  revealing that while activity on the UK Continental Shelf (UKCS) is expected to increase, expenditure will remain consistent at around £1.5 billion per annum, demonstrating the sector’s improving efficiency performance.

The report findings show:

  • Decommissioning now represents just under 10 per cent of the oil and gas industry’s overall expenditure
  • Pace of decommissioning expenditure remains steady at around £1.5 billion per year
  • Over the next decade, forecast expenditure for UKCS decommissioning remains constant at £15.2 billion
  • M&A activity in some areas of the North Sea is extending the life of offshore assets and moving decommissioning activity to the future
  • Within the next ten years $85 (£67) billion will be spent decommissioning oil and gas assets in the global market
  • To date, nine per cent of all the platforms installed on the UKCS have been decommissioned

Operators across the sector contribute data for OGUK’s Decommissioning Insight, which plays a fundamental role in providing market intelligence that highlights predicted activity and cost trends.

Commenting on the report, OGUK’s decommissioning manager Joe Leask said:

“With a firm grip on cost management, environmental and safety standards, our tenth annual Decommissioning Insight shows a healthy sector well-positioned to realise some £15bn of opportunities over the next decade.

“Our report underlines the significant intellectual capital anchored here in the UK. Ensuring this is shared is key to maintaining the competitiveness of the sector, enabling this homegrown industry to capture the lion’s share of an emerging global market some four times greater.

“We’re already seeing exciting new companies emerging as specialists in decommissioning, either offering full-scope solutions or focusing on specialising in areas including offshore well decommissioning and onshore dismantling and disposal. These innovative business models offer industry real choices whether operators carry out decommissioning themselves or pass the scope to those companies offering increasingly competitive solutions,

“Decommissioning is not the end of our industry; it offers a new beginning. Four years ago, industry stepped up to the challenge to cut decommissioning costs by 35 percent and we are well on the way to achieving that. We must apply the same collective determination and pioneering capabilities to deliver the net zero carbon challenge. This includes the re-use of old facilities for carbon capture and storage, presenting new opportunities to generate new value from old assets and help deliver the net zero future that industry has made to commitment to deliver.”

Download your copy of the Decommissioning Insight Report:

The leading representative body for the UK offshore oil and gas industry is challenging the nation to put its energy know-how to the test as part of a new educational campaign.

OGUK’s ‘Know Your Energy’ aims to increase awareness of where energy comes from, the emissions resulting from its use and how oil and gas powers the nation’s everyday lives as part of a diverse energy mix.

Central to the campaign is an informative website and interactive quiz, designed to give visitors to the site the opportunity to flex their know-how and see how energy savvy they really are.

Harry Thorne, lead business adviser OGUK and Know Your Energy project lead said:

“In the UK we are very lucky to have a secure, reliable and affordable supply of energy that helps power our every-day lives, however we don’t often stop and think about where that energy comes from and how it reaches us.

“In a changing world we all have a responsibility to reflect on how we can reduce our environmental impact. Roadmap 2035 is the UK oil and gas industry’s compelling blueprint to achieving net zero carbon emissions by 2050 in the UK and 2045 in Scotland. We hope our ‘Know Your Energy’ campaign will aide public understanding of the energy mix the nation relies on day to day and ultimately help us all become more thoughtful about our energy consumption.”

The campaign website and interactive quiz can be found at www.doyouknowyourenergy.com. More information on Roadmap 2035, industry’s response to government net zero commitments can be found by visiting https://www.energyvision2035.com/roadmap-2035.

Ends

Notes to Editors:

 

Campaign Materials:

  • Our ‘Know Your Energy’ video gallery can be accessed here.

A fledgling industry star who unlocked £20 million of additional value for her company and a business that is using pioneering 3D printing to champion improved safety and environmental performance were among those to be crowned winners last night at the OGUK Awards 2019, sponsored by Shell U.K. Limited.

Over 550 guests gathered at the P&J Live to recognise the standout out achievements of businesses and high-performing individuals from across the industry. 30 finalists were in contention for ten awards, including excellence in decommissioning, business innovation and energy transition, a new award for 2019.

OGUK Graduate of the Year Erin Ingram, Apprentice of the Year Ashley Thomas and Mentor of the Year Teresa Waddington 

Praising the winners, Deirdre Michie, Chief Executive of OGUK, said:

“OGUK’s annual awards ceremony is a highly regarded event within the UK oil and gas industry calendar and this was one of the most competitive years yet.

“The success of our industry is down to the talent, ingenuity and skill of our people and that’s what these awards celebrate. A huge congratulations to our winners and a sincere thank you to all our finalists, whose dedication and expertise help us continually raise the bar on industry excellence.”

Steve Phimister vice president of event sponsor Shell’s UK upstream business said:

“It has been hugely rewarding to celebrate the talents and achievements of all the people who help the UK oil and gas industry make such a vital contribution to today’s energy sector. These are also the people who will play a key role in shaping the future success of the industry, as the UK navigates the energy transition.”

The winners across the ten categories are as follows:

OGUK Apprentice of the Year (sponsored by OPITO)

Ashley Thomas, BP

OGUK Graduate of the Year (sponsored by ECITB)

Erin Ingram, TAQA

OGUK Mentor of the Year Award 2018

Teresa Waddington, Shell U.K. Limited

Workforce Engagement

PD&MS GROUP

OGUK Business Innovation Award (SME)

WFS Technologies Limited

Business Innovation – Large Enterprise

TOTAL E&P UK

Diversity and Inclusion (sponsored by Spirit Energy)

CNR International (UK) Ltd

MER UK (sponsored by the Oil & Gas Authority)

Neptune Energy – BP – Japex UK E&P Ltd

Excellence in Decommissioning

Repsol Sinopec Resources UK

Energy Transition (sponsored by Fairfield Decom Limited)

BP

New guidelines promoting good practice in robust project delivery published by OGUK today provide companies with a systematic framework for ensuring oil and gas projects are on time and within budget.

Industry experts including operators, contractor companies and the Engineering Construction Industry Training Board (ECITB) have contributed to the guidelines. They cover all stages of a project from initial concept through to commissioning, handover and close out, and are intended for use by project teams, senior management, joint venture partners, project owners, assurance & review teams, supply chain companies and the OGA.

Katy Heidenreich, OGUK’s operations optimisation manager, said:

“Improving how the sector stewards our oil and gas assets is vital to securing a safe and sustainable future for the UK Continental Shelf. These guidelines provide companies with a systematic method for strengthening their processes to achieve repeatable, predictable delivery of oil and gas projects which meet their cost and schedule targets.

The industry’s progress in this area has been recognised by the Oil and Gas Authority in its 2018 ‘UKCS Projects Insights Report’ which indicated that 60 per cent of major projects went into operation on time compared with an historic average of 25 per cent.”

Andy Brown, director, regional operations at Engineering Construction Industry Training Board, said:
“We know the oil and gas industry must improve project delivery and we therefore welcome the new OGUK guidelines, which provide an excellent framework to drive the consistent, predictable and sustainable working practices that are vital to the future success of the sector.

“The ECITB’s Project Collaboration Toolkit shares these goals and is designed to help project leaders create a collaborative approach to improve innovation and efficiency in project delivery across the North Sea.”

OGUK has published a series of guidelines that enable the sharing of industry expertise in support of the OGA’s Asset Stewardship Strategy including the Reserves Progression Tool, all of which aim to drive continuous improvement in performance.

ENDS

In a speech opening OGUK’s inaugural HSE Conference in Aberdeen this morning, OGUK Chief Executive Deirdre Michie said:
Good morning ladies and gentlemen and a warm welcome to our very first OGUK HSE Conference, Health, safety and the environment are at the core of everything we do, both as a major hazard industry and as an industry with people at its heart,
So, I’m delighted that we are building on the success of last year’s Safety30 with another focused event.

I’d like to kick off by thanking our sponsors, who have made today possible, and to thank our impressive list of expert speakers and panellists.
We look forward to hearing and learning from them as to how we can improve our own operations,
Our conference theme is solving tomorrow’s challenges, today.

It’s about exploring how this industry is taking health, safety and environment forward into the next decade.
As you’ll see from your agenda, we will consider a range of issues – the prevention of hydrocarbon releases, control of major accident hazards, emissions reduction and mental health – key areas of what is a very busy and important landscape of priorities for you all.
These are big issues with serious implications for everyone in our industry and so I’m grateful that we have Martin Temple, Chair of the HSE, who will provide an insight into the regulators strategic focus areas.

Many of you will remember Martin gave an excellent speech to Safety30 last year, reflecting on the legacy of Piper Alpha and the impact it has had across other industries as well as our own.Now earlier this year we marked the decade since the helicopter tragedy off the coast of Peterhead, where sixteen lives were lost. As we go about our day to day activities and as we look to the future, we must never forget and we must always remain chronically uneasy to ensure that the unthinkable doesn’t happen.

We do all share that responsibility and the culture we encourage is so important as we look to tomorrow’s challenges.
Not just on health and safety but importantly, in the environment in which we operate,
showing humility because we know we are all fallible and showing leadership in ensuring safe operations and the wellbeing of our people and our environment.

So where is this industry today in terms of H, S and E performance?
Our 2019 Health and Safety report published last week provided an informed view, outlining areas where we must continue to drive action,
And while there are ongoing improvements in aviation safety, there is much more to be done to reduce major hydrocarbon releases,
The downward trend in HCRs shown in a three-year moving average plateaued in 2018,
Meaning that if the rate continues the current trajectory this year there will be an increase – that would be the first in a decade.

It’s a badge we don’t want, and one which we are working hard to avoid,
And so, with our members, the regulator, Step Change in Safety and the MER Asset Integrity Task Group,
OGUK on behalf of industry has developed a robust release prevention plan.

With actions underway or under consideration across people, processes and plant, endorsing principles in process safety leadership, – the first time in my North Sea history that our industry has aligned behind a common set of process leadership principles and I commend all those involved who have got us here.
We are also sharing Good Practice Stories, and, establishing a common way of assuring our barriers to prevent incidents remain fit for purpose,
And always – We should remind ourselves that the report’s findings are not just numbers on a page – they are about ourselves, our colleagues, friends, family.
Which is why I am also really pleased that OGUK is working across industry to improve understanding of mental health. Our review of good practice, based on a survey of members, showed that industry is making progress.
Because as one in four of us will experience a mental health problem each year, it is key that we continue to develop our understanding and response,
Looking to the future this is an industry also focused on its environmental performance and intent on improving it.

While we continue to manage and reduce emissions from production operations, we know there is much more to be done in a world which rightly demands change at an ever-increasing pace. How we step up to this challenge has never been more highly scrutinized. Extinction Rebellion, Greta Thunberg, but also, people like you and me, and our children,
Worried about climate change -rightly – and keen to act, we all have a role to play, personally and professionally. And given our job in providing the energy and industrial products from oil and gas that the UK needs, I can understand why people are looking to us for answers.

Our message remains – we can be, and must be, part of the solution.

Earlier this year we published Roadmap 2035: A Blueprint to Net Zero, which sets out the five key areas requiring collective action from industry, government and regulators to ensure we step forward successfully towards a net zero future,
Helping to deliver net zero by 2045 in Scotland and 2050 in the UK,
By developing people and skills,
Driving technology and innovation,
Growing the economy and exports
And doing it in a way which is safe, sustainable and yes,
Socially acceptable.

And so, in identifying steps to understand and reduce emissions from production operations – the launch of the OGTC’s Net Zero Solutions centre is an excellent example of industry in action to provide a key source of innovative expertise. By bringing industry together with one response and a way forward to adapt and transform and step up to play our part in a net zero world, Roadmap 2035 offers a credible plan of action towards a successful future
It shows the next generation the opportunities this industry can offer. Whether that’s through electrifying the North Sea, developing a hydrogen economy or successfully delivering carbon capture usage and storage solutions – we need to do all of this and at pace.
It’s great we have Sam Coupland who later this afternoon will give an insight into the practical steps BP are taking to advance low carbon in the North Sea,
With an audience of so many professionals here in the room today I hope we can also soak up some of your expertise on the energy transition
Please do come and speak to our membership team at our stand and tell us about the work you are doing in these areas. So, helping us as we continue to engage with governments, regulators and society.

Showing that we are indeed part of the solution.Using our skills, capabilities and our people to unlock a diverse energy mix and be a foundation to a net zero future.
My ask of you all today is to help us promote the Roadmap, to take it into your companies and think about what you’re doing that can put us on track to success,
Indeed, to solve tomorrow’s challenges today,
As Abraham Lincoln said – the best way to predict the future is to create it,
I’d like to open the conference now and get on with hearing from our speakers and kicking off what I hope will be an invigorating day which sparks new ideas,
So, I wish you all a great conference and hope you take a lot from it,
And now it is my great pleasure to welcome on stage, Martin Temple. Chair of the HSE,
Thank you.

The chief executive of the leading representative body for the UK’s offshore oil and gas industry has today urged Aberdeen to grab the £1trillion of business opportunities presented by moves to net zero.

Speaking at the State of the Cities Conference today in Aberdeen, OGUK Chief Executive Deirdre Michie said

“Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

“And meeting as much of this from domestic resources is therefore crucial.

“At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

“To put the size of that prize in context, oil and gas companies currently support CCUS schemes at only 18 sites across the world,

“But we know that 10,000 will be required globally by 2070.

“It’s an exciting proposition because as we look to become a smart net zero energy industry we will need a smart net zero energy Aberdeen and shire to help us do this.

“Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

“The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital.”

Ends

 The full speech is below:

Good afternoon ladies and gentlemen and thank you to you DJ for your kind introduction and Aberdeen City Council for inviting me to speak today,

Can I add my congratulations to Hanan, Dougie and Graeme on their insightful and thoughtful and helpful report,

And to the city council for the progress made – the overview that Councillor Laing gave this morning is very impressive and as I said to Angela Scott – examples like the TECA are real triumphs for the city and her team.

I’ve really enjoyed the insightful sessions so far and it’s an honour to follow you Sir Howard,

I absolutely support that a joined up – collaborative public private approach is key and so today I’d like to talk about areas where, working together, we can realise a successful future for this region and for our industry.

These are:

1 – Attracting and retaining talented people here,

2 – Improving our international competitiveness,

And 3- enhancing our global reputation,

Aberdeen city and shire are considered by many to be the engine room of the UK’s offshore oil and gas industry,

We have a truly special relationship that has been built up over the last 50 years or so,

Our histories are intertwined as will be our futures and so

Looking ahead to the energy transition and delivery of the net zero ambitions, I believe there is a huge opportunity for us to go after together.  

We are an international industry and an international city and so staying competitive and attracting investment is key,

And it’s great that our 2019 Economic Report, shows, that as a sector, we’ve significantly improved efficiency and are fitter and more competitive than we have been for years.

As a result, investment is returning, and activity is picking up.

We have increased production by 20 percent over the last 4 years –as Hanan said an extraordinary achievement for a mature industry like ours and a reinforcement of our resilience and ability to keep on reinventing ourselves.

Utilising technology, introducing smarter and more efficient ways of working have helped to improve our competitiveness as we continue to emerge from one of the most challenging downturns in our history,

And while significant pressures remain on the supply chain here in the north east, staying competitive, working co-operatively with a fair sharing of risks and reward, need to be the cornerstones to unlocking more activity across the whole sector

The economic impact of getting this right for the local and UK economy is considerable –

Production of oil and gas accounted for 1.2 percent of UK GDP – equal to around £24bn

The industry continues to invest around £15bn per annum across the oil and gas lifecycle and has over the years contributed more than £350bn in production taxes alone.

And looking ahead, the OBR forecasts that production tax payments by this industry will amount to more than £8.5bn over the next five years,

When it comes to employment – so important for the north east – this sector supports 270,000 jobs across the UK,

The economic impact is clearly a positive one – but we recognise that with the challenges of climate change – we have to be better at communicating the positive contribution that this industry makes – and needs to continue to make if we are to ensure a fair and managed transition to a net zero future.

And just as we’ve heard today how Aberdeen is a city with a firm eye on the future,

You should be in no doubt that we are also an industry in action,

Because we too are part of a society which wants change, and we are confident that as the UK’s offshore oil and gas industry  – we can play a key role in being part of the solution – helping to drive change that can contribute to a net zero economy  which can then be exported to the rest of  the world.

We are moving forward positively and constructively, and we must continue to do so and at pace.

And so, what are we doing as an industry to be part of what will be a challenging but exciting, refocused energy future?

Well this year we published Roadmap 2035: A Blueprint to Net Zero,

It is one of the first major industrial responses to government commitments to deliver net zero carbon emissions by 2045 in Scotland and 2050 in the UK.

It sets out five key themes requiring tripartite action of industry, BOTH governments and regulators to ensure delivery. Support from them is crucial to our industry and to this city.

One – Helping meet the UK’s needs for energy and industrial products

Two – Driving technology and innovation and the launch of OGTC’s – that came out of the city deal and its Net Zero Solutions Centre is a great example of the kind of action that is needed and is happening

Three -Growing the economy and exports,

Four – developing our people, our skills and a collaborative culture

 And Five – Supporting net zero, because the UK needs our oil and gas products as part of an increasingly diversified energy system if it is going to deliver its net zero ambitions,

 The roadmap was developed out of over 2,500 conversations that continue today with people from across the sector and our stakeholders – many of whom are in this room today,

Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

And meeting as much of this from domestic resources is therefore crucial.

At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

To put the size of that prize in context – oil and gas companies currently support CCUS schemes at only 18 sites across the world,

But we know that 10,000 will be required globally by 2070

It’s an exciting proposition because as we look to become a smart net zero energy industry – we will need a smart net zero energy Aberdeen and shire to help us do this.

Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital,

So why is place important to the energy transition?

Surely every city could be and indeed should be a net zero energy city?

But the granite city like our industry has the skills, the experience and the ability to reinvent itself, as it has in the past, from ship building to fishing to the early oil industry founded on whale oil!

Building on our expertise as a global oil and gas hub, and with the right support,

Aberdeen’s future potential as an energy city is limitless,

We’re already seeing the real benefits that this expertise can bring,

We have the European Offshore Wind Deployment Centre directly visible from the coast (when there’s no har..!) and we have , Hywind – the world’s first floating offshore wind development, as well as RGU’s Energy Transition Institute – taking insights and learnings to countries like Mexico, and Columbia to name but a few.

Many of our companies operating in Aberdeen are already leading the way –and we should be especially proud of our supply chain companies like Wood and Global Energy Group which have expanded their footprint over the years into other parts of the energy sector,

And while yes, every economy should have a diverse ecosystem of businesses and industries to ensure it is sustainable,

We should also embrace the enormous value this industry has added and can continue to add as we look to the future. It’s a USP to be treasured.

Place is important and it’s why we are so pleased to see the progress being made here in recent  years in relation to  infrastructure -like, the Harbour –  AWPR  and the fibre network as well as  amenities like TECA, the art gallery and Music hall that are so key  to  establishing  this city as a great place to work and live and so helping us to secure the talent we need.

But more than this, projects like the hydrogen bus project and Hydrogen Aberdeen – reinforce the ambition and drive which will ensure Aberdeen can enjoy more success.

Aberdeen has, as we are all saying – a golden opportunity to claim the mantle of being a global net zero energy capital,

Grasping a healthy portion of the £1 trillion spend the UK Government estimates will be required to meet the challenging targets.

So, my ask of you today is to help champion Roadmap 2035,

In Developing a diverse energy workforce with transferable skills, that’s renowned globally for finding solutions to some of the world’s most challenging problems,

Helping to bring to life CCUS, hydrogen and low carbon technologies by encouraging innovation and establishing Aberdeen as a global hub for low carbon technologies.

And in so doing, realising Aberdeen’s full potential in the transition,

So, looking to the future, I’m confident we have the ingredients for success and that there should be no limits to our ambitions.

It’s an exciting time for this industry and I know you will agree, an exciting time for Aberdeen and the shire.

Thank you. I’d now like to hand over to Chris Murray, director of core cities UK.

The increasing importance of digitalisation was put under the spotlight today at a breakfast briefing event, sponsored by Deloitte, held by the leading representative body for the UK’s offshore oil and gas industry, OGUK.

An audience of over 150 industry professionals heard about the benefits that could be realised in safety, efficiency and financial through the digital transformation of the North Sea sector.

Keynote speaker Marc O’Connor, Consulting Leader – Energy, Resources & Industrials, Deloitte, who said that digitalisation provided real opportunities for people to be released from routine type jobs, freeing them up to focus on value-added tasks that will provide the innovation solutions of the future.

Reflecting on the speech, expert panellists Alan Muirhead, Director of Projects & Engineering, Neptune Energy UK, Stephen Sheal, External Relationship Director, Oil & Gas Technology Centre and  Jared Owen, Director – Digital & Entrepreneurship, Opportunity North East, discussed how industry can ensure it has the skills and expertise needed to help deliver Roadmap 2035.

Speaking after the event, panel chair OGUK Stakeholder and Communications Director Gareth Wynn said:

“Digitalisation isn’t just the future, it’s the here and now. Today’s event showed that while this industry has a firm grasp on the opportunities digital transformation could bring, we must continue to collaborate and share good practice.

“From setting up an agile culture which removes barriers to decision making, to ensuring colleagues have fit-for-purpose skills and technologies, there are changes both big and small that this industry could make which could have a real impact on the safety, efficiency and competitiveness of our sector.

“This is an industry shaping up for the future and the delivery of Roadmap 2035 – our blueprint to a net zero future. It’s clear from today’s event that how we choose to embrace digitalisation could make or break our ability to be part of the low carbon economy we all want to see.”

Marc O’Connor, Consulting Leader – Energy, Resources & Industrials at Deloitte said: “Deloitte has extensive experience of digital transformation, and while the journey can be complex, we know that a successful outcome can be characterised very clearly and simply. When integrated and used effectively, digital has the potential to add value throughout a project’s lifecycle and those who invest with a data from day one approach can realise significant benefits.

“It was great to share our perspective on digital capital projects at this morning’s OGUK breakfast meeting. As well as covering real-world examples of how digital initiatives are being used on capital projects, I discussed a way forward for how businesses can navigate their own digital transformation journey and outlined the various opportunities that exist for operators and suppliers working in the UK’s oil and gas sector.”

OGUK response to Coronavirus

Commenting on the current concerns regarding coronavirus in the UK, Trevor Stapleton, OGUK’s HSE director, said:

“We’re already working with our members to share official advice on coronavirus (Covid-19) from the relevant bodies and will continue to work across the sector to ensure the health of the people in our industry. This sector is well versed in managing risk on complex safety and health matters, with robust processes and arrangements in place to ensure effective prevention measures and response. In addition to following the advice from health bodies and applying relevant procedures, individual operators will also decide further arrangements relevant to their specific needs, including travel and health advice. OGUK remains in regular contact with the relevant authorities to understand any further industry specific advice.”

Early sight of business opportunities at OGUK’s Springtime Share Fair

 

Supply chain companies keen to be among the first to learn about business opportunities will benefit from advance information on major oil and gas projects by participating in OGUK’s Share Fair in Aberdeen on March 24.

As the leading representative body for the UK’s offshore oil and gas industry, OGUK’s popular business development event supports the growth of a resilient, competitive and diverse supply chain. This ambition combined with a drive to increase exports and grow the economy, is a key theme in the industry’s Roadmap 2035, which sets out a blueprint to deliver a net-zero oil and gas basin.

Matt Abraham, OGUK’s supply chain director, said:

“Share Fair is one of OGUK’s flagship events that focuses on promoting early engagement between suppliers and potential clients. This one-day event is an invaluable opportunity for suppliers to bring innovation, new solutions and fresh ideas to the attention of operator and major contractor companies planning contracts for future projects.”

Four different aspects of business development activities will be on offer at Share Fair. These include the highly popular one-to-one business meetings booked in advance with key decision-makers; major purchaser companies’ presentations of project overviews and anticipated contract opportunities and exhibition space where informal discussions with the wider supply chain community can take place.

Major purchaser companies who’ve already signed up to share their forward plans include BP, Chrysaor, CNOOC International, Dana Petroleum, Neptune Energy, Repsol Sinopec Resources UK Limited, Spirit Energy and TOTAL E&P UK Limited.

This year also sees the launch of a new format enabling suppliers to pitch new ideas focused on addressing key challenges in the sector. These sessions will be offered to OGUK members only and submissions which will be requested in advance of the event

Flagship industry conference to reinforce oil and gas delivery in a net zero context

Efforts by the sector to support decarbonisation, improve business competitiveness and develop skills for the future will be explored at OGUK’s annual industry conference in Aberdeen on Wednesday 3 June.

Nearly 500 delegates are expected to attend the conference, titled “Getting to Net Zero – Roadmap 2035” and will consider the progress being made as well as the challenges that are out there if industry is to deliver on its commitment to Roadmap 2035 that it published last year..

Coming six months ahead of the COP 26 conference to be held in Glasgow this year, the flagship industry gathering will consider the continued importance of the UK’s oil and gas industry as the UK and Scotland gears up to meet its climate ambitions.

Focusing on the sixty actions outlined in the five key themes of the sector’s Roadmap 2035: a blueprint tonet zero, delegates will hear from leading industry speakers on:

  • Deepening supply chain excellence
  • Strengthening industry competitiveness
  • Delivering a net zero basin
  • Driving technology and innovation
  • Developing skills, behaviours and culture

Launching the 2020 conference today, OGUK Chief Executive Deirdre Michie said:

“With COP26 on the horizon, our 2020 conference is set to be an important milestone for the sector as we look to champion, challenge and consider our efforts in the transition to a low carbon future.

“The conference programme and exhibition will showcase how we are truly an industry in action to develop solutions, providing the energy the UK needs within the context of ever reducing emissions. The conference will provide a key platform to demonstrate how the challenge is being embraced as an opportunity by companies across the UK.

“This is a valuable event for anyone interested in the UK’s offshore oil and gas industry to understand the changing business landscape and the opportunities it could bring to businesses, jobs, people and economies.”

Ends

Digitalisation critical to delivery of Roadmap 2035

The need for improved digitalisation across North Sea operations and the critical role of data in delivering Roadmap 2035, the UK oil and gas industry’s blueprint for net zero, will come under the spotlight at OGUK’s Data and Digital Day on Tuesday 25 February 2020 at The Chester Hotel, Aberdeen.

The inaugural event, chaired by Dr Daniel Brown, Executive Director of Common Data Access (CDA), a wholly owned subsidiary of OGUK, boasts a packed agenda with guest speakers lined up to outline the fundamental role of data and digital in enabling a competitive industry that realises its full potential within the energy transition.

Dr Brown said:

“I am delighted to host OGUK’s first data and digital day. Our impressive line-up of expert speakers will talk delegates through the digital journey of the North Sea as well as discuss the current digital themes in the sector, from data from drones to subsurface data science.

“We will also take a closer look at the role digital can play in improving the cost effectiveness of brown-field developments, with the ultimate aim of deferring decommissioning, and optimising economic recovery of the UK’s oil and gas reserves. With presentations touching on the full E&P lifecycle, we aim to highlight how digital capabilities are core to a competitive UK industry, that will continue to meet UK energy needs while earning our place in the low carbon economy.

“I hope those attending will gain a new appreciation of the range of opportunities that digitalisation can offer businesses and the industry more broadly as we look to deliver Roadmap 2035: our blueprint for net zero.”

Speakers include:

• Maja Kildedal, Head of Innovation and Improvements, Equinor UK
• David Lecore, Senior Compliance Manager, OGA
• Chris Frost, Data Analytics Lead, DataCo Global
• Adrien Bisset, Regional Manager Europe, Belmont Technology Inc
• Stuart Beatty, Managing Director, Kestrel Group
• Steve Aiken, Founder, Intelligent Plant
• Esther Diederen, Digital Transformation Lead, Spirit Energy

-Ends –

UK oil and gas industry outlines transition plans

The leading representative body for the UK’s offshore oil and gas industry today outlined the details of its response to UK and Scottish Government net zero commitments in a keynote speech delivered by OGUK Chief Executive Deirdre Michie OBE.

Speaking to an audience of politicians, policymakers and campaign groups in Edinburgh, Deirdre Michie said:

Good afternoon everyone and thank you for coming today.

As we all know, our country and much of the world is currently engaged in an increasingly polarised debate about climate change,

It’s passionate, important and yes – urgent.

I’ve come to you today to say that the UK’s offshore oil and gas industry is not shying away from the climate conversation but embracing it,

More than this, I want to put forward our specific proposals for the transition to the lower carbon energy future we all want to see,

It was after all Abraham Lincoln who said the best way to predict the future is to create it,

So, I’m pleased you have all been able to join us and look forward to your thoughts and reflections,

Many of you will know that OGUK’s role is to inform, engage and champion the 400 plus members operating in the UK Continental Shelf – often referred to as the North Sea,

And while this term might be convenient it is actually incorrect as it ignores the East Irish Sea and the vast frontier region in the Atlantic Ocean west of Shetland,

It is a neat – if rather dull – illustration of the need for this technical and complex but critical industry to better inform the debate with facts and tangible examples,

Facts need to be the foundation of our understanding,

Because that is what will enable us to find solutions.

And before I go on, there should be no doubt: this industry isn’t talking about what is and isn’t climate change anymore.

The facts are that the climate is changing, and we must all change if we are to protect our planet for future generations,

It will require constructive, collective and coordinated action to decarbonise a largely fossil fuel-based society which has, in relatively few years, helped to dramatically improve the living standards, health outcomes and quality of life that many of us so freely enjoy today,

But we should also be clear that the need for change also comes at a time when global energy demand is forecast to grow by up to 30 percent by 2050.

And while all industries, businesses and people need to think about what they can each do,

Our industry needs to be generous in deploying our skills, infrastructure and expertise to help find those solutions.

And we are already stepping up to the challenge.

We are an industry capable of doing big things in remarkable ways,

A capability we can – and want to – apply to the climate change challenge.

Here in Scotland, and across the UK, this industry has and continues to sustain hundreds of thousands of jobs, currently over 270,000 as per our workforce report last year.

That’s about one in every 125 employed people in the UK, or 1 in 25 in Scotland.

We’ve contributed over £350bn in production taxes alone, and more from corporation tax and Pay As You Earn as well as billions of pounds in terms of capital spend and running costs invested over the years.

Importantly, this indigenous industry has supported an affordable and secure domestic supply of oil and gas, which remains fundamental to so many of the products and fuel that we need for our everyday lives.

While we continue to emerge from one of the toughest downturns in our history and are by no means out of the woods yet, with real pressures remaining on the supply chain, it is through this incredibly challenging time that we have demonstrated our ability to transform and adapt, delivering a reputation for efficiency and competitiveness,

Operating cost reductions are being sustained and expected to remain around $15-16 per barrel this year.

And we continue to deliver safely and efficiently the day job of exploring, developing, producing and decommissioning.

We are also in action in terms of responding to the challenges of climate change,

You only have to go to Orkney, Glasgow and here in Edinburgh and visit any of our members working in your community to know that this is a challenge we are taking seriously.

And I would encourage you to do this, and to see it first-hand, some of the great work that is going on.

Stepping up to reduce carbon emissions to net zero by 2050 in the UK and by 2045 in Scotland is also an opportunity for the UK’s oil and gas industry to shine in a competitive global market.

Sustaining jobs, contributing to public services through taxation, providing secure energy supply and diversifying as we help to find solutions.

The Scottish Government has made clear that it supports a sustainable, fair and inclusive transition,

And I know the UK Government is taking a similar approach,

These are important principles which say a lot about the kind of transition Scotland wants to see.

First – it means planning for a transition which ensures people in Scotland continue to enjoy affordable and low carbon energy,

Second – this transition will deliver opportunities for the people working in the industry today as it evolves in the coming decades,

Third – the transition must deliver sustainable and enduring change,

While I welcome calls to “do more” and at pace,

We now need to move the debate on from talking about the need to act, to demonstrating what we are doing to act,

We have a plan – Roadmap 2035 – which offers a blueprint for net zero,

It is one of the first industrial responses to the UK and Scottish governments net zero commitments.

It aims to enable a safe, sustainable and competitive oil and gas industry supporting the UK’s energy needs and its transition to a net zero future,

These aspects are not mutually exclusive but inextricably linked.

Developed through over 5000 engagements with a range of stakeholders, Roadmap 2035 has been welcomed by both governments and energy ministers.

It sets out 60 actions across five key areas,

And today I can confirm that OGUK has convened an industry-wide group of company leaders and young professionals to coordinate efforts, identify gaps and drive action in pursuit of what is a truly challenging task but also a transformational opportunity,

So, to the first group of actions – our support for net zero

We will do this by reducing emissions from the operational production of oil and gas,

And through supporting other heavy emitting sectors to achieve net zero through our skills, technologies and infrastructure,

But what does this mean?

Firstly – in terms of our own production emissions, we will be a net zero oil and gas basin by 2050,

Reducing emissions from 14 million tonnes – currently three percent of the UK’s total greenhouse gas emissions – to 0.5mt – in line with the Climate Change Committee outlook,

It will require significant investment, new technology and close working with the renewables sector in Scotland and across the UK

I’m pleased to announce that we are developing targets for emissions reduction, and we will soon publish a detailed action plan in support of this — this is an industry in action.

In December last year the OGA – our industry regulator – published the interim findings of the first phase of its Energy Integration Project,

Working with BEIS, the Crown Estate and Ofgem, this important report offers a good starting point as to how we begin to bring key carbon reduction concepts to life,

Reducing emissions on oil and gas installations by using low carbon electricity including directly from offshore wind farms to replace offshore power generation from gas and diesel,

It takes me on to our second net zero commitment.

We will support the development of CCUS and other low carbon tech at scale,

The Climate Change Committee estimates that up to 175m tonnes of C02 each year will need to be captured and stored in the UK by 2050.

And that’s even if the UK delivers against every cross-sectoral recommendation in their initial report,

Indeed – CCUS is required in all decarbonisation scenarios.

Globally, some 10,000 projects will be needed,

An industry forecast to be worth around £100bn each year by 2050,

This is not only a necessary technology to meet our climate goals, it is therefore also a potential opportunity for Scotland and a diversifying energy industry.

This sector stands ready to play its part.

Assisting in the development of the commercial business models that are needed to help deliver CCUS clusters, hydrogen opportunities and the decarbonisation of offshore platforms at scale,

We are putting forward our skills, capabilities, assets and knowledge,

And working with governments and regulators to clarify policies and regulations on CCUS and hydrogen,

including improving the understanding of what is required to repurpose existing oil and gas assets for use in the low carbon world,

The CCS charter signed between the Scottish Government and industry demonstrates our commitment,

We are looking to work with governments and regulators to progress the five CCUS projects across the UK which now need to move at pace into the next phase,

One of which is the North East’s £224m Acorn project.

Expected now to be operational by 2024,

And with the potential to store 16.2m tonnes of carbon per year,

It would be good progress, but still only a fraction of what is required.

And on hydrogen,

Much more will have to be done to explore the full opportunity of this potentially disruptive player in the clean energy mix,

Reports by Swansea and Keel Universities found up to 30 percent of the UK’s gas supply can be replaced with hydrogen without needing to modify people’s appliances,

With currently 75 percent of the UK’s heating demand in buildings being met by natural gas

It shows the scale of the opportunity,

And the analysis from the International Energy Agency showing that the cost of producing hydrogen from renewable electricity could fall 30% by 2030 as a result of declining costs of renewables and the scaling up of hydrogen production helps us to begin to see what a truly transitional and transformational approach could look like,

Blue hydrogen derived from gas will need to compete alongside green hydrogen made from renewables – but both will be needed if we are to match the energy needs I referenced earlier on,

So, combining with Carbon Capture and Storage, hydrogen from natural gas could cut emissions, alongside efforts to reduce the cost of producing hydrogen from clean energy,

You can see why it matters that we do this right,

The developing hydrogen economy could also bring far-reaching benefits across Scotland,

For example, in Orkney, where a consortium led by the OGTC alongside universities and oil companies are looking to create a test centre at Flotta oil terminal for trialling these different types of technologies for use on offshore platforms,

So today we urge the UK and Scottish governments to continue to think about the full system changes from the production of energy to its use in our homes and businesses,

To recognise that this industry can help provide solutions which unlock the inclusive, fair and sustainable transition we all want to see,

And we call for a comprehensive UK energy strategy from the UK Government, to be reflected in their imminent white paper.

The Committee on Climate Change report also recognised that by 2050, oil and gas will continue to form part of a diverse energy mix,

Albeit at lower levels, roughly about a third of what it is today,

That’s because the CCC forecast that oil and gas will still be needed by those sectors especially difficult to decarbonise,

Sectors such as heavy industry and aviation, and of course its continued use in many industrial and chemical processes,

Whether its pharmaceuticals, or in producing the composite materials which, used sustainably, will continue to be critical in our daily lives,

So, I also consider it’s important we deliver as much of this demand from domestic resources – a point I’ll come back to shortly.

Meeting net zero is only the first of five themes outlined in what you can see truly is a comprehensive roadmap,

With our 2nd theme of driving technology and innovation, we will spur a net zero technology revolution, adding some £10bn in economic value to the UK through technology and innovation,

Through work being championed by the OGTC, that has already launched a net zero solutions centre in support of this ambition,

And our 3rd theme, of developing people and skills,

By 2035 we will support some 130,000 jobs,

Compared to just over 150,000 direct and indirect jobs we support today,

This will actually require us to attract 40,000 new people, a quarter of whom will be in new roles, many of which don’t exist yet, to cater for technology developments as well as the expected natural attrition from the industry through retirement,

This is being driven by the industry skills body OPITO and their innovative work through the Energy Skills Alliance to support the development of a multi-skilled energy workforce that is flexible, dynamic and technologically enabled,

In growing the economy and exports, our 4th theme,

We’re looking to double exports from a diversifying energy sector to £20bn each year,

Working with governments to deepen our sector’s understanding of international markets and ensure our experience is utilised globally and in different sectors,

And those of you who joined the excellent cross-party group held with Scottish Renewables last week will have heard how diversification in the supply chain can open the door to more international opportunities,

The final theme is on meeting the UK’s need for energy and industrial products.

I spoke earlier about the requirement to meet as much of the UK’s energy needs from domestic resources, as per the CCC report and its focus on energy sovereignty,

And their forecast that during the transition and beyond, there remains a need for oil and gas.

Let’s be clear here – the premature shut down of this industry in the UK would do nothing to impact consumption,

Those needs would instead be met from increasing the amount of oil and gas imported from across the world,

But it would also mean we realise none of the benefits this indigenous industry brings in jobs, taxation and security of supply,

Nor would it enable control over environmental governance and standards.

So, what might seem an easy and quick fix, is instead simply shifting the problem to other countries.

Which is sometimes referred to as carbon offshoring,

This isn’t fair, inclusive or sustainable, it’s actually irresponsible.

It’s an example of a transition which helps get to the same destination, but at an unnecessary cost,

Leading to unintended consequences because the changes aren’t inclusive or supported by an effective, integrated and affordable energy system,

This is not the path we need to go down, and it’s why today we are coming to you with our plan,

Building on their contribution to this great industry, we can take Aberdeen, Glasgow, Shetland, Edinburgh and everywhere in between on the journey,

We can equip people with the skills and remove barriers so that they can enjoy rewarding energy careers for decades to come,

Meaning that by 2045 in Scotland –  we will have delivered a truly fair, inclusive and sustainable transition to a low carbon future where our transformed and thriving industry is part of the solution,

It’s an exciting proposition.

One which will underpin our calls for a transformational sector deal which we will look to announce later this year,

Which is why today my ask of you all is to consider the Roadmap,

To hear out the facts and then make your call as to the role of this industry going forward.

As we look to the future, I have no doubt that it will be our shared understanding, informed by facts,

And an inclusive approach, that will enable our delivery of the net zero challenge,

Yes, we need vigorous debate, but the so-called cancel culture Obama spoke about,

The culture which says the people in our industry don’t have the right to a voice,

Undermines the fundamental principles of the inclusive, fair and sustainable transition we all want to see.

We are here and we want to help,

And we want to be a positive force in this transition,

As Jonathan Foer notes in his excellent book ‘We are the Weather’,

Collective action is the best way to save our home and way of life.

So, let’s work together, because we can.

Thank you.

OGUK responds to OGA energy transition challenge


The Chairman of the Oil and Gas Authority has challenged the UK oil and gas sector to respond to the energy transition. Commenting, 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.”

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Climate change will be solved by solutions not stunts

Commenting on protests outside oil and gas offices in Aberdeen today, OGUK Stakeholder & Communications Director Gareth Wynn said:

“Climate change will be solved by practical actions not conspiracy theories and stunts. It’s disappointing that this group is choosing to disrupt the normal working day of people in this industry, causing alarm rather than engage in meaningful discussion with key decision makers.

“This industry, through our Roadmap 2035, is committed to delivering an inclusive, fair and sustainable transition to a low carbon and diverse energy mix. Again, we welcome those who are willing to take part in meaningful and solutions-focused discussions. Our industry is packed full of people with the engineering and environmental knowledge and skills to play a key part in reducing emissions and we are already taking action.”

Reshaped OGUK announced as industry gears up to deliver net zero blueprint

The leading representative body for the UK offshore oil and gas industry has kicked off the new year with ambitious plans to champion the sector as part of a diverse energy mix.

Two new directors will join OGUK’s leadership team under the continued direction of Chief Executive Officer Deirdre Michie OBE.

Katy Heidenreich

Katy Heidenreich

Trevor Stapleton is announced as OGUK’s new Health, Safety and Environment (HSE) director while Katy Heidenreich is confirmed as Operations director, both commencing their new roles on 3 February 2020.

The two new directors join a reshaped leadership team to support industry in its delivery of Roadmap 2035: a blueprint for net zero.

Matt Abraham will take on a more focused brief as Supply Chain and Exports director, directing his extensive experience in contractor companies to help grow exports and support a resilient, competitive and diverse supply chain. Meanwhile. Mike Tholen will become OGUK’s Sustainability director, using his own deep experience in the industry to help drive  action to deliver a net zero basin,  from the operational production of oil and gas and assisting the UK in reducing its total GHG emissions through to adoption of technologies including Carbon Capture Usage and Storage.

Graham Elgie continues as OGUK’s Finance and Corporate Services director and Gareth Wynn as OGUK’s Stakeholder and Communications director.

Commenting, OGUK Chief Executive Deirdre Michie said:

“2020 is synonymous with perfect vision and we are wasting no time in getting to work delivering industry’s ambitious plans for the future outlined in Roadmap 2035: a blueprint for net zero.

“I’m delighted to announce these changes to our leadership team which will enable us to even better support companies and to help drive  action as we work to inform, engage and advocate the importance of this industry as part of a diverse energy mix.

Trevor Stapleton

Trevor Stapleton

“We have a challenging but exciting year ahead of us as we work to support all our members that operate in or provide services to the UK offshore energy industry. With continued volatility in oil markets our focus remains on enabling a safe and competitive industry that delivers to its full potential within the energy transition, ensuring the North Sea remains an internationally attractive place to do business.

“Katy and Trevor each bring an incredible amount of experience and are highly regarded by their peers. Their strategic insight will be critical as we gear up to deliver our blueprint for net zero, demonstrating the practical steps companies are taking to reduce emissions, meet UK energy needs and develop our people and skills for the future.

“This industry has a positive role to play in providing solutions to the UK’s net zero challenge and we are already in action with our Roadmap. Leading from the front, OGUK is proud to champion our dynamic and diverse industry and we look forward to continuing to work with all of our stakeholders in the year ahead.”

OGUK condemns dangerous and short-sighted stunt

Commenting on news that protestors have boarded a drilling rig in Dundee harbour, OGUK Chief Executive Deirdre Michie said:

“This is a dangerous and short-sighted stunt which does absolutely nothing to help provide the solutions which will be required to meaningfully deliver net zero emissions by 2045 in Scotland.

“Worse than this, we know that the premature shutdown of the North Sea would only increase reliance on oil and gas imported from across the world where we have no control over emissions and with none of the substantial benefits our indigenous industry brings with its thousands of skilled jobs, the funding of public services and energy security.

“This stunt puts both the activists and offshore workforce at risk and our industry – with its focus on safe operations – will not condone these actions.

“If Extinction Rebellion is serious about net zero then it needs to become serious about what will be required and recognise the critical contribution our industry could make if it realises its full potential to support the transition to a lower carbon and more diverse energy mix.

“Our industry is part of the solution and Roadmap 2035: a blueprint for net zero outlines our plans to reduce emissions from the operational production of oil and gas while supporting other heavy emitting sectors to reduce emissions through low carbon technologies including Carbon Capture Usage and Storage and hydrogen. This is an industry in action, and we are committed to working with anyone to find solutions and deliver the low carbon future we all want to see.”

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Partnership working critical to UK net zero ambitions

The leading representative body for the UK’s offshore oil and gas industry has underlined its commitment to developing the technical solutions required to help meet the UK and Scotland’s net zero ambitions. It comes as two key reports on plans to reduce emissions are published today.

Industry regulator the Oil and Gas Authority (OGA) today published the interim findings of its Energy Integration report detailing how the sector is working to reduce emissions from the operational production of oil and gas through platform electrification. The report also outlines how the sector can support the decarbonisation of other heavy industries through carbon capture, usage and storage, and hydrogen.

The Climate Change Committee today also published its 2019 progress report to the Scottish Parliament which recommends both the UK and Scottish governments work more closely together to make the best use of devolved and reserved policy levers in key areas where responsibilities are split. This includes the future of heating, electric vehicles and low-carbon infrastructure.

Commenting, OGUK Upstream Policy Director Mike Tholen said:

“Today we have two big reports which both recognise the contribution the oil and gas industry can make to the UK and Scotland’s net zero ambitions.

“Partnership working between industries, governments and regulators will be critical to the scale of our success. As we look to a new year, OGUK will continue to seek support for industry’s Roadmap to 2035: a blueprint for net zero.

“Enabling a safe and competitive industry that realises its full potential in the energy transition can only be good news for the jobs, communities and climate aspirations we support.

“From reducing emissions from the operational production of oil and gas through electrifying offshore platforms, to helping other heavy emitting sectors to decarbonise by developing carbon capture, usage and storage technologies at scale, our industry has the skills, capabilities and infrastructure to play a key role in developing solutions.”

Read about Roadmap 2035 and our Energy Transition Outlook report

OGUK’s response to the General Election

Commenting on the General Election results, OGUK Chief Executive Deirdre Michie said:

“We look forward to continuing our constructive working with the Prime Minister and the UK Government as we work to ensure a safe and competitive industry which realises a successful future through the energy transition and a Sector Deal. We welcome all the new members of Parliament and thank outgoing members for their support for this critical industry.

“As we go into the new year our priority will be to ensure and reinforce recognition of the positive role our industry is playing in helping to achieve net zero emissions alongside providing a major economic contribution and a big part of our energy security.”

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Industry report calls for urgent action to progress UK carbon capture and storage

A comprehensive report into the changing energy landscape has called for urgent action to progress low carbon technologies critical to the UK and Scottish Government’s net zero ambitions.

It says government and industry must work together to progress to the next stage five key projects across the UK which look to capture, transport and store carbon dioxide from heavy emitting industrial processes including power plants. It also calls for joint action to increase the potential for low carbon hydrogen to be used as a fuel to heat homes and power cars.

The policy recommendations are published today by the leading representative body for the oil and gas sector, OGUK, in its second Energy Transition Outlook Report. The document considers the changing energy landscape in the UK and outlines progress achieved by the UK’s oil and gas sector over the past year to provide industry and economy-wide solutions towards reducing emissions.

However, the report authors warn that the sector will need to earn its position in the changing energy world, with rapid action required to ensure the sector transforms over the next 30 years while continuing to meet as much of the UK’s oil and gas needs from domestic resources.

The report findings show:

  • The UK’s oil and gas industry is in a unique position to lead in the development of Carbon Capture Usage and Storage, with 5 projects situated across the country currently being explored
  • UK energy sector investment will need to double in order to achieve a decarbonised economy

Commenting on the report, OGUK Chief Executive Deirdre Michie said:

“Our Energy Transition Outlook report shows the changing energy landscape in the UK and the opportunities and challenges it presents all industries, businesses and people, our own included.

“With the launch of Roadmap 2035: a blueprint for net zero, we were one of the first industrial sectors to set out credible plans to support the UK and Scottish Government net zero emissions. Yet the oil and gas sector will have to earn its position in this new energy world, cutting its own emissions and working with governments and regulators to progress the five CCUS projects which now need to move forward into the next phase and developing hydrogen.

“As our report shows, there is lots of work to be done in a huge market which is only getting bigger as global demand for energy continues to grow. The Climate Change Committee report published at the beginning of this year noted CCUS was critical to our net zero ambitions. Our challenge, working with others including the OGTC’s Net Zero Solutions Centre, is to realise CCUS and other low carbon technologies as an opportunity for British businesses.”

 

 

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Reinvention of the UK oil and gas industry key to delivering energy transition

Prominent figures from across the North Sea’s oil and gas industry will come together on 3 December to launch a vital piece of industry research and to discuss practical steps that are being taken by industry to help deliver the energy transition.

Will Webster, report author and energy policy manager OGUK, will present the findings of OGUK’s key report “Energy Transition Outlook 2019” at the final OGUK business breakfast of the year, sponsored by Deloitte and hosted at the P&J Live. The report outlines what the industry has achieved over the last year and explores in detail what is now required to move the UK closer to the government’s net-zero objective.

Will is joined by a panel of distinguished industry leaders, including Ariel Flores, Regional President, BP North Sea, Steve Phimister, VP UK Upstream, Shell U.K. Limited and Troy Stewart, Head of Energy Industries UK and Ireland, ABB who will give their view on how industry is tackling the challenges and opportunities presented by the energy transition. Joining them for an interactive panel session will be Myrtle Dawes, Solution Centre Director at The Oil & Gas Technology Centre, giving delegates the opportunity to have their questions answered.

Deirdre Michie, Chief Executive OGUK and panel chair, said:

“Our industry is renowned for its people, skills and capacity to solve problems and find solutions. This is a powerful and positive combination that is already being deployed to ensure the North Sea plays its part in the energy transition. Alongside delivering the energy we need, the sector is already focussed on lowering its own emissions and helping deliver a net-zero economy in the decades to come and our flagship report puts a spotlight on the important role our industry needs to take.

Graham Hollis, Aberdeen office senior partner for event sponsor Deloitte, said:

“It’s great to see this important topic discussed at the final OGUK business breakfast this year. Since the Energy Transition report was launched last December, companies and bodies from across the sector have united to take bold steps towards delivering a net-zero oil and gas basin. It is important to reflect on these and celebrate the industry’s collective drive to achieve the UK and Scottish Government’s net zero carbon targets.

“Looking to the future, the expert workforce and dynamic infrastructure of the oil and gas industry is uniquely placed to pioneer new projects such as carbon capture and storage, and it will be great to see so many key players come together to discuss the opportunities and challenges the industry faces.”

 

Report shows rise in UK’s decommissioning competitiveness

The UK’s decommissioning sector’s growing competitiveness is revealed in the 2019 Decommissioning Insight report launched by OGUK today at the Offshore Decommissioning Conference held jointly with Decom North Sea. Now in its tenth year of publication, the report forecasts the UK’s decommissioning activity and expenditure over the next decade,  revealing that while activity on the UK Continental Shelf (UKCS) is expected to increase, expenditure will remain consistent at around £1.5 billion per annum, demonstrating the sector’s improving efficiency performance.

The report findings show:

  • Decommissioning now represents just under 10 per cent of the oil and gas industry’s overall expenditure
  • Pace of decommissioning expenditure remains steady at around £1.5 billion per year
  • Over the next decade, forecast expenditure for UKCS decommissioning remains constant at £15.2 billion
  • M&A activity in some areas of the North Sea is extending the life of offshore assets and moving decommissioning activity to the future
  • Within the next ten years $85 (£67) billion will be spent decommissioning oil and gas assets in the global market
  • To date, nine per cent of all the platforms installed on the UKCS have been decommissioned

Operators across the sector contribute data for OGUK’s Decommissioning Insight, which plays a fundamental role in providing market intelligence that highlights predicted activity and cost trends.

Commenting on the report, OGUK’s decommissioning manager Joe Leask said:

“With a firm grip on cost management, environmental and safety standards, our tenth annual Decommissioning Insight shows a healthy sector well-positioned to realise some £15bn of opportunities over the next decade.

“Our report underlines the significant intellectual capital anchored here in the UK. Ensuring this is shared is key to maintaining the competitiveness of the sector, enabling this homegrown industry to capture the lion’s share of an emerging global market some four times greater.

“We’re already seeing exciting new companies emerging as specialists in decommissioning, either offering full-scope solutions or focusing on specialising in areas including offshore well decommissioning and onshore dismantling and disposal. These innovative business models offer industry real choices whether operators carry out decommissioning themselves or pass the scope to those companies offering increasingly competitive solutions,

“Decommissioning is not the end of our industry; it offers a new beginning. Four years ago, industry stepped up to the challenge to cut decommissioning costs by 35 percent and we are well on the way to achieving that. We must apply the same collective determination and pioneering capabilities to deliver the net zero carbon challenge. This includes the re-use of old facilities for carbon capture and storage, presenting new opportunities to generate new value from old assets and help deliver the net zero future that industry has made to commitment to deliver.”

Download your copy of the Decommissioning Insight Report:

Industry body asks nation to test its energy knowledge

The leading representative body for the UK offshore oil and gas industry is challenging the nation to put its energy know-how to the test as part of a new educational campaign.

OGUK’s ‘Know Your Energy’ aims to increase awareness of where energy comes from, the emissions resulting from its use and how oil and gas powers the nation’s everyday lives as part of a diverse energy mix.

Central to the campaign is an informative website and interactive quiz, designed to give visitors to the site the opportunity to flex their know-how and see how energy savvy they really are.

Harry Thorne, lead business adviser OGUK and Know Your Energy project lead said:

“In the UK we are very lucky to have a secure, reliable and affordable supply of energy that helps power our every-day lives, however we don’t often stop and think about where that energy comes from and how it reaches us.

“In a changing world we all have a responsibility to reflect on how we can reduce our environmental impact. Roadmap 2035 is the UK oil and gas industry’s compelling blueprint to achieving net zero carbon emissions by 2050 in the UK and 2045 in Scotland. We hope our ‘Know Your Energy’ campaign will aide public understanding of the energy mix the nation relies on day to day and ultimately help us all become more thoughtful about our energy consumption.”

The campaign website and interactive quiz can be found at www.doyouknowyourenergy.com. More information on Roadmap 2035, industry’s response to government net zero commitments can be found by visiting https://www.energyvision2035.com/roadmap-2035.

Ends

Notes to Editors:

 

Campaign Materials:

  • Our ‘Know Your Energy’ video gallery can be accessed here.

Success for future industry leader and innovative technology venture at annual awards

A fledgling industry star who unlocked £20 million of additional value for her company and a business that is using pioneering 3D printing to champion improved safety and environmental performance were among those to be crowned winners last night at the OGUK Awards 2019, sponsored by Shell U.K. Limited.

Over 550 guests gathered at the P&J Live to recognise the standout out achievements of businesses and high-performing individuals from across the industry. 30 finalists were in contention for ten awards, including excellence in decommissioning, business innovation and energy transition, a new award for 2019.

OGUK Graduate of the Year Erin Ingram, Apprentice of the Year Ashley Thomas and Mentor of the Year Teresa Waddington 

Praising the winners, Deirdre Michie, Chief Executive of OGUK, said:

“OGUK’s annual awards ceremony is a highly regarded event within the UK oil and gas industry calendar and this was one of the most competitive years yet.

“The success of our industry is down to the talent, ingenuity and skill of our people and that’s what these awards celebrate. A huge congratulations to our winners and a sincere thank you to all our finalists, whose dedication and expertise help us continually raise the bar on industry excellence.”

Steve Phimister vice president of event sponsor Shell’s UK upstream business said:

“It has been hugely rewarding to celebrate the talents and achievements of all the people who help the UK oil and gas industry make such a vital contribution to today’s energy sector. These are also the people who will play a key role in shaping the future success of the industry, as the UK navigates the energy transition.”

The winners across the ten categories are as follows:

OGUK Apprentice of the Year (sponsored by OPITO)

Ashley Thomas, BP

OGUK Graduate of the Year (sponsored by ECITB)

Erin Ingram, TAQA

OGUK Mentor of the Year Award 2018

Teresa Waddington, Shell U.K. Limited

Workforce Engagement

PD&MS GROUP

OGUK Business Innovation Award (SME)

WFS Technologies Limited

Business Innovation – Large Enterprise

TOTAL E&P UK

Diversity and Inclusion (sponsored by Spirit Energy)

CNR International (UK) Ltd

MER UK (sponsored by the Oil & Gas Authority)

Neptune Energy – BP – Japex UK E&P Ltd

Excellence in Decommissioning

Repsol Sinopec Resources UK

Energy Transition (sponsored by Fairfield Decom Limited)

BP

New guidelines to drive systematic project delivery improvements

New guidelines promoting good practice in robust project delivery published by OGUK today provide companies with a systematic framework for ensuring oil and gas projects are on time and within budget.

Industry experts including operators, contractor companies and the Engineering Construction Industry Training Board (ECITB) have contributed to the guidelines. They cover all stages of a project from initial concept through to commissioning, handover and close out, and are intended for use by project teams, senior management, joint venture partners, project owners, assurance & review teams, supply chain companies and the OGA.

Katy Heidenreich, OGUK’s operations optimisation manager, said:

“Improving how the sector stewards our oil and gas assets is vital to securing a safe and sustainable future for the UK Continental Shelf. These guidelines provide companies with a systematic method for strengthening their processes to achieve repeatable, predictable delivery of oil and gas projects which meet their cost and schedule targets.

The industry’s progress in this area has been recognised by the Oil and Gas Authority in its 2018 ‘UKCS Projects Insights Report’ which indicated that 60 per cent of major projects went into operation on time compared with an historic average of 25 per cent.”

Andy Brown, director, regional operations at Engineering Construction Industry Training Board, said:
“We know the oil and gas industry must improve project delivery and we therefore welcome the new OGUK guidelines, which provide an excellent framework to drive the consistent, predictable and sustainable working practices that are vital to the future success of the sector.

“The ECITB’s Project Collaboration Toolkit shares these goals and is designed to help project leaders create a collaborative approach to improve innovation and efficiency in project delivery across the North Sea.”

OGUK has published a series of guidelines that enable the sharing of industry expertise in support of the OGA’s Asset Stewardship Strategy including the Reserves Progression Tool, all of which aim to drive continuous improvement in performance.

ENDS

Industry conference looks to future on health, safety and environment

In a speech opening OGUK’s inaugural HSE Conference in Aberdeen this morning, OGUK Chief Executive Deirdre Michie said:
Good morning ladies and gentlemen and a warm welcome to our very first OGUK HSE Conference, Health, safety and the environment are at the core of everything we do, both as a major hazard industry and as an industry with people at its heart,
So, I’m delighted that we are building on the success of last year’s Safety30 with another focused event.

I’d like to kick off by thanking our sponsors, who have made today possible, and to thank our impressive list of expert speakers and panellists.
We look forward to hearing and learning from them as to how we can improve our own operations,
Our conference theme is solving tomorrow’s challenges, today.

It’s about exploring how this industry is taking health, safety and environment forward into the next decade.
As you’ll see from your agenda, we will consider a range of issues – the prevention of hydrocarbon releases, control of major accident hazards, emissions reduction and mental health – key areas of what is a very busy and important landscape of priorities for you all.
These are big issues with serious implications for everyone in our industry and so I’m grateful that we have Martin Temple, Chair of the HSE, who will provide an insight into the regulators strategic focus areas.

Many of you will remember Martin gave an excellent speech to Safety30 last year, reflecting on the legacy of Piper Alpha and the impact it has had across other industries as well as our own.Now earlier this year we marked the decade since the helicopter tragedy off the coast of Peterhead, where sixteen lives were lost. As we go about our day to day activities and as we look to the future, we must never forget and we must always remain chronically uneasy to ensure that the unthinkable doesn’t happen.

We do all share that responsibility and the culture we encourage is so important as we look to tomorrow’s challenges.
Not just on health and safety but importantly, in the environment in which we operate,
showing humility because we know we are all fallible and showing leadership in ensuring safe operations and the wellbeing of our people and our environment.

So where is this industry today in terms of H, S and E performance?
Our 2019 Health and Safety report published last week provided an informed view, outlining areas where we must continue to drive action,
And while there are ongoing improvements in aviation safety, there is much more to be done to reduce major hydrocarbon releases,
The downward trend in HCRs shown in a three-year moving average plateaued in 2018,
Meaning that if the rate continues the current trajectory this year there will be an increase – that would be the first in a decade.

It’s a badge we don’t want, and one which we are working hard to avoid,
And so, with our members, the regulator, Step Change in Safety and the MER Asset Integrity Task Group,
OGUK on behalf of industry has developed a robust release prevention plan.

With actions underway or under consideration across people, processes and plant, endorsing principles in process safety leadership, – the first time in my North Sea history that our industry has aligned behind a common set of process leadership principles and I commend all those involved who have got us here.
We are also sharing Good Practice Stories, and, establishing a common way of assuring our barriers to prevent incidents remain fit for purpose,
And always – We should remind ourselves that the report’s findings are not just numbers on a page – they are about ourselves, our colleagues, friends, family.
Which is why I am also really pleased that OGUK is working across industry to improve understanding of mental health. Our review of good practice, based on a survey of members, showed that industry is making progress.
Because as one in four of us will experience a mental health problem each year, it is key that we continue to develop our understanding and response,
Looking to the future this is an industry also focused on its environmental performance and intent on improving it.

While we continue to manage and reduce emissions from production operations, we know there is much more to be done in a world which rightly demands change at an ever-increasing pace. How we step up to this challenge has never been more highly scrutinized. Extinction Rebellion, Greta Thunberg, but also, people like you and me, and our children,
Worried about climate change -rightly – and keen to act, we all have a role to play, personally and professionally. And given our job in providing the energy and industrial products from oil and gas that the UK needs, I can understand why people are looking to us for answers.

Our message remains – we can be, and must be, part of the solution.

Earlier this year we published Roadmap 2035: A Blueprint to Net Zero, which sets out the five key areas requiring collective action from industry, government and regulators to ensure we step forward successfully towards a net zero future,
Helping to deliver net zero by 2045 in Scotland and 2050 in the UK,
By developing people and skills,
Driving technology and innovation,
Growing the economy and exports
And doing it in a way which is safe, sustainable and yes,
Socially acceptable.

And so, in identifying steps to understand and reduce emissions from production operations – the launch of the OGTC’s Net Zero Solutions centre is an excellent example of industry in action to provide a key source of innovative expertise. By bringing industry together with one response and a way forward to adapt and transform and step up to play our part in a net zero world, Roadmap 2035 offers a credible plan of action towards a successful future
It shows the next generation the opportunities this industry can offer. Whether that’s through electrifying the North Sea, developing a hydrogen economy or successfully delivering carbon capture usage and storage solutions – we need to do all of this and at pace.
It’s great we have Sam Coupland who later this afternoon will give an insight into the practical steps BP are taking to advance low carbon in the North Sea,
With an audience of so many professionals here in the room today I hope we can also soak up some of your expertise on the energy transition
Please do come and speak to our membership team at our stand and tell us about the work you are doing in these areas. So, helping us as we continue to engage with governments, regulators and society.

Showing that we are indeed part of the solution.Using our skills, capabilities and our people to unlock a diverse energy mix and be a foundation to a net zero future.
My ask of you all today is to help us promote the Roadmap, to take it into your companies and think about what you’re doing that can put us on track to success,
Indeed, to solve tomorrow’s challenges today,
As Abraham Lincoln said – the best way to predict the future is to create it,
I’d like to open the conference now and get on with hearing from our speakers and kicking off what I hope will be an invigorating day which sparks new ideas,
So, I wish you all a great conference and hope you take a lot from it,
And now it is my great pleasure to welcome on stage, Martin Temple. Chair of the HSE,
Thank you.

Aberdeen can position itself as global net zero energy capital

The chief executive of the leading representative body for the UK’s offshore oil and gas industry has today urged Aberdeen to grab the £1trillion of business opportunities presented by moves to net zero.

Speaking at the State of the Cities Conference today in Aberdeen, OGUK Chief Executive Deirdre Michie said

“Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

“And meeting as much of this from domestic resources is therefore crucial.

“At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

“To put the size of that prize in context, oil and gas companies currently support CCUS schemes at only 18 sites across the world,

“But we know that 10,000 will be required globally by 2070.

“It’s an exciting proposition because as we look to become a smart net zero energy industry we will need a smart net zero energy Aberdeen and shire to help us do this.

“Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

“The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital.”

Ends

 The full speech is below:

Good afternoon ladies and gentlemen and thank you to you DJ for your kind introduction and Aberdeen City Council for inviting me to speak today,

Can I add my congratulations to Hanan, Dougie and Graeme on their insightful and thoughtful and helpful report,

And to the city council for the progress made – the overview that Councillor Laing gave this morning is very impressive and as I said to Angela Scott – examples like the TECA are real triumphs for the city and her team.

I’ve really enjoyed the insightful sessions so far and it’s an honour to follow you Sir Howard,

I absolutely support that a joined up – collaborative public private approach is key and so today I’d like to talk about areas where, working together, we can realise a successful future for this region and for our industry.

These are:

1 – Attracting and retaining talented people here,

2 – Improving our international competitiveness,

And 3- enhancing our global reputation,

Aberdeen city and shire are considered by many to be the engine room of the UK’s offshore oil and gas industry,

We have a truly special relationship that has been built up over the last 50 years or so,

Our histories are intertwined as will be our futures and so

Looking ahead to the energy transition and delivery of the net zero ambitions, I believe there is a huge opportunity for us to go after together.  

We are an international industry and an international city and so staying competitive and attracting investment is key,

And it’s great that our 2019 Economic Report, shows, that as a sector, we’ve significantly improved efficiency and are fitter and more competitive than we have been for years.

As a result, investment is returning, and activity is picking up.

We have increased production by 20 percent over the last 4 years –as Hanan said an extraordinary achievement for a mature industry like ours and a reinforcement of our resilience and ability to keep on reinventing ourselves.

Utilising technology, introducing smarter and more efficient ways of working have helped to improve our competitiveness as we continue to emerge from one of the most challenging downturns in our history,

And while significant pressures remain on the supply chain here in the north east, staying competitive, working co-operatively with a fair sharing of risks and reward, need to be the cornerstones to unlocking more activity across the whole sector

The economic impact of getting this right for the local and UK economy is considerable –

Production of oil and gas accounted for 1.2 percent of UK GDP – equal to around £24bn

The industry continues to invest around £15bn per annum across the oil and gas lifecycle and has over the years contributed more than £350bn in production taxes alone.

And looking ahead, the OBR forecasts that production tax payments by this industry will amount to more than £8.5bn over the next five years,

When it comes to employment – so important for the north east – this sector supports 270,000 jobs across the UK,

The economic impact is clearly a positive one – but we recognise that with the challenges of climate change – we have to be better at communicating the positive contribution that this industry makes – and needs to continue to make if we are to ensure a fair and managed transition to a net zero future.

And just as we’ve heard today how Aberdeen is a city with a firm eye on the future,

You should be in no doubt that we are also an industry in action,

Because we too are part of a society which wants change, and we are confident that as the UK’s offshore oil and gas industry  – we can play a key role in being part of the solution – helping to drive change that can contribute to a net zero economy  which can then be exported to the rest of  the world.

We are moving forward positively and constructively, and we must continue to do so and at pace.

And so, what are we doing as an industry to be part of what will be a challenging but exciting, refocused energy future?

Well this year we published Roadmap 2035: A Blueprint to Net Zero,

It is one of the first major industrial responses to government commitments to deliver net zero carbon emissions by 2045 in Scotland and 2050 in the UK.

It sets out five key themes requiring tripartite action of industry, BOTH governments and regulators to ensure delivery. Support from them is crucial to our industry and to this city.

One – Helping meet the UK’s needs for energy and industrial products

Two – Driving technology and innovation and the launch of OGTC’s – that came out of the city deal and its Net Zero Solutions Centre is a great example of the kind of action that is needed and is happening

Three -Growing the economy and exports,

Four – developing our people, our skills and a collaborative culture

 And Five – Supporting net zero, because the UK needs our oil and gas products as part of an increasingly diversified energy system if it is going to deliver its net zero ambitions,

 The roadmap was developed out of over 2,500 conversations that continue today with people from across the sector and our stakeholders – many of whom are in this room today,

Indeed, as the excellent Climate Change Committee report showed, there will still be demand for oil and gas in the UK by 2050, at just under half of what it is today,

And meeting as much of this from domestic resources is therefore crucial.

At the same time our industry and this city can support the development and commercialisation of low carbon technologies including CCUS and hydrogen – identified as vital to a net zero outcome by the CCC.

To put the size of that prize in context – oil and gas companies currently support CCUS schemes at only 18 sites across the world,

But we know that 10,000 will be required globally by 2070

It’s an exciting proposition because as we look to become a smart net zero energy industry – we will need a smart net zero energy Aberdeen and shire to help us do this.

Aberdeen as Europe’s oil capital has served us all well and we are hugely appreciative of the support from the north east,

The opportunity is now as the industry shifts its focus, for Aberdeen to also position itself not just as Europe’s net zero city but as the world’s net zero energy capital,

So why is place important to the energy transition?

Surely every city could be and indeed should be a net zero energy city?

But the granite city like our industry has the skills, the experience and the ability to reinvent itself, as it has in the past, from ship building to fishing to the early oil industry founded on whale oil!

Building on our expertise as a global oil and gas hub, and with the right support,

Aberdeen’s future potential as an energy city is limitless,

We’re already seeing the real benefits that this expertise can bring,

We have the European Offshore Wind Deployment Centre directly visible from the coast (when there’s no har..!) and we have , Hywind – the world’s first floating offshore wind development, as well as RGU’s Energy Transition Institute – taking insights and learnings to countries like Mexico, and Columbia to name but a few.

Many of our companies operating in Aberdeen are already leading the way –and we should be especially proud of our supply chain companies like Wood and Global Energy Group which have expanded their footprint over the years into other parts of the energy sector,

And while yes, every economy should have a diverse ecosystem of businesses and industries to ensure it is sustainable,

We should also embrace the enormous value this industry has added and can continue to add as we look to the future. It’s a USP to be treasured.

Place is important and it’s why we are so pleased to see the progress being made here in recent  years in relation to  infrastructure -like, the Harbour –  AWPR  and the fibre network as well as  amenities like TECA, the art gallery and Music hall that are so key  to  establishing  this city as a great place to work and live and so helping us to secure the talent we need.

But more than this, projects like the hydrogen bus project and Hydrogen Aberdeen – reinforce the ambition and drive which will ensure Aberdeen can enjoy more success.

Aberdeen has, as we are all saying – a golden opportunity to claim the mantle of being a global net zero energy capital,

Grasping a healthy portion of the £1 trillion spend the UK Government estimates will be required to meet the challenging targets.

So, my ask of you today is to help champion Roadmap 2035,

In Developing a diverse energy workforce with transferable skills, that’s renowned globally for finding solutions to some of the world’s most challenging problems,

Helping to bring to life CCUS, hydrogen and low carbon technologies by encouraging innovation and establishing Aberdeen as a global hub for low carbon technologies.

And in so doing, realising Aberdeen’s full potential in the transition,

So, looking to the future, I’m confident we have the ingredients for success and that there should be no limits to our ambitions.

It’s an exciting time for this industry and I know you will agree, an exciting time for Aberdeen and the shire.

Thank you. I’d now like to hand over to Chris Murray, director of core cities UK.

Industry grasps digital opportunities

The increasing importance of digitalisation was put under the spotlight today at a breakfast briefing event, sponsored by Deloitte, held by the leading representative body for the UK’s offshore oil and gas industry, OGUK.

An audience of over 150 industry professionals heard about the benefits that could be realised in safety, efficiency and financial through the digital transformation of the North Sea sector.

Keynote speaker Marc O’Connor, Consulting Leader – Energy, Resources & Industrials, Deloitte, who said that digitalisation provided real opportunities for people to be released from routine type jobs, freeing them up to focus on value-added tasks that will provide the innovation solutions of the future.

Reflecting on the speech, expert panellists Alan Muirhead, Director of Projects & Engineering, Neptune Energy UK, Stephen Sheal, External Relationship Director, Oil & Gas Technology Centre and  Jared Owen, Director – Digital & Entrepreneurship, Opportunity North East, discussed how industry can ensure it has the skills and expertise needed to help deliver Roadmap 2035.

Speaking after the event, panel chair OGUK Stakeholder and Communications Director Gareth Wynn said:

“Digitalisation isn’t just the future, it’s the here and now. Today’s event showed that while this industry has a firm grasp on the opportunities digital transformation could bring, we must continue to collaborate and share good practice.

“From setting up an agile culture which removes barriers to decision making, to ensuring colleagues have fit-for-purpose skills and technologies, there are changes both big and small that this industry could make which could have a real impact on the safety, efficiency and competitiveness of our sector.

“This is an industry shaping up for the future and the delivery of Roadmap 2035 – our blueprint to a net zero future. It’s clear from today’s event that how we choose to embrace digitalisation could make or break our ability to be part of the low carbon economy we all want to see.”

Marc O’Connor, Consulting Leader – Energy, Resources & Industrials at Deloitte said: “Deloitte has extensive experience of digital transformation, and while the journey can be complex, we know that a successful outcome can be characterised very clearly and simply. When integrated and used effectively, digital has the potential to add value throughout a project’s lifecycle and those who invest with a data from day one approach can realise significant benefits.

“It was great to share our perspective on digital capital projects at this morning’s OGUK breakfast meeting. As well as covering real-world examples of how digital initiatives are being used on capital projects, I discussed a way forward for how businesses can navigate their own digital transformation journey and outlined the various opportunities that exist for operators and suppliers working in the UK’s oil and gas sector.”