Argus Media Limited

10/14/2021 | News release | Distributed by Public on 10/14/2021 10:05

UK's OGA calls for laser focus on upstream GHG targets

The UK's upstream oil and gas industry has made progress on cutting greenhouse gas (GHG) emissions but must retain "a laser focus" on further reductions if it is to meet its commitments, according to a report published today by the country's oil and gas regulator.

The Oil and Gas Authority's (OGA) inaugural Emissions Monitoring Report shows total GHGs emitted by the UK's upstream sector fell by 11pc between 2018 and 2020, underpinned by "proactive abatement initiatives... a decrease in offshore activity, and the permanent shutdown of several high emitters". The report highlights that two thirds of the country's offshore oil and gas installations reduced emissions last year compared with 2019. Those that managed to cut did so by an average of 36pc.

The OGA describes the data as "good progress" but said its findings should be viewed in the context of last year's extraordinary events. "2020 was an unusual year for offshore operations as companies grappled with the twin challenge of the Covid-19 pandemic and lower commodity prices, so continued decreases will require every effort," it said.

The UK's oil and gas industry has committed to a series of GHG reduction targets under the North Sea Transition Deal, which was struck with the government in March this year as part of the UK's wider goal of reaching net zero emissions by 2050. The deal commits industry to a 10pc cut in GHG emissions from offshore oil and gas production by 2025, a 25pc reduction by 2027 and a 50pc cut by 2050 - all against a 2018 baseline.

While the earlier targets appear within reach, the OGA's report suggests that meeting and going beyond the 2030 goal of halving emissions will present a major challenge. It calls on the sector to take a wide-ranging approach to meet its commitments, including platform electrification, further reductions in flaring and venting, integration with hydrogen, moving ahead with carbon capture and storage (CCS) projects and retrofitting platforms with more energy-efficient equipment.

"Our report makes clear that, despite positive early signs, a laser focus on further emissions reductions is required," OGA chief executive Andy Samuel said. "Falling short isn't an option if the sector wants to retain its social licence to operate."

By James Keates