ENERGY NEWS
9
NOVEMBER 2021
UK NORTH SEA
Energy Review By Tsvetana Paraskova
The opportunities and challenges of the energy transition, the UK’s energy security amid surging natural gas prices, and updates on drilling and development projects featured in the North Sea oil and gas news flow in the past month.
The leading association of the offshore industry, OGUK, published its Energy Transition Outlook 2021 in October, which showed that direct emissions from the UK oil and gas sector are being driven down with a 2 million tonne cut in emissions during 2020, of which OGUK estimates that around half can be attributed to operators’ actions. While production in 2020 fell 5%, mostly due to the impacts of COVID-19 on production and activity, emissions fell by 10%, OGUK said. The emissions reduction was expected due to the decline in activity. Yet, compared with previous years, emissions declined significantly further than would have been expected from the reduced activity and associated decline in production, the association noted. Operators are beginning to realise near-term emissions reduction through continuous improvements, including reduced flaring and venting, streamlining operations, and investing in targeted plant modifications, all while maintaining and improving on an 80% production efficiency target, OGUK’s survey showed. The UK Government is making rapid progress in developing market structures for carbon capture and hydrogen market design, the association noted in the report, but it also said that “Current volatile market conditions underline the need for diverse sources of oil and gas and ongoing development of indigenous resources.” Without additional investment, the proportion of anticipated oil and gas demand supplied from local resources could fall to around one third by 2027, OGUK warned. In addition, more work is needed to ensure the energy transition will support local economies and jobs, according to the association. Increased investment associated with the North Sea Transition Deal (NSTD), and more widely across the energy sector, will have its greatest impact where it can make the most of the UK’s existing supply chain. “This means building on existing advantages and expertise derived from oil and gas projects and moving quickly to develop competences in new market segments as they emerge,” OGUK’s report says.
Continues >
UK NORTH SEA REVIEW SPONSORED BY
"OSSO is a value focused provider of specialist fluid temperature control and separation solutions."
www.ossoltd.com
