Fossil fuels remain the dominant source of energy supply, but now account for 78.3 per cent, a record low level.
Energy Transition
NSMP is committed to playing a leadership role in the achievement of a net zero future
Our Challenge:
Maintaining a reliable domestic energy supply to grow the economy and support millions of people who depend on natural gas
Transitioning vital workers and supply chains to drive a net-zero economy
Current Situation
The UK currently derives 3/4 of its energy needs from oil and gas
Fossil fuels remain the dominant source of energy supply in the UK, accounting for 78.3% - a record low. About half (46%) of this need is met by United Kingdom Continental Shelf (UKCS) domestic resources, with NSMP assets currently providing up to 26% of the UK's energy supply. But that's rapidly changing to meet the needs of our world...
Maximising domestic gas production over imports is key to achieving net zero given the much smaller carbon intensity of domestic hydrocarbon production
The Climate Change Committee (CCC) Net Zero by 2050 Target
Reaching Net Zero in the UK
In 2019, the UK Government and the devolved administrations committed to the Net Zero target as recommended by the Climate Change Committee. Reaching net-zero greenhouse gas (GHG) emissions requires extensive changes across the economy, but the foundations are in place. Major infrastructure decisions need to be made in the near future and quickly implemented. These changes are unprecedented in their overall scale, but large-scale transitions have been achieved successfully in the UK before, such as the natural gas switchover in the 1970s or the switch to digital broadcasting in the 2000s.
An Industry-Wide Plan
The North Sea Transition Deal
"This decade will be the decade of delivery and change. Tackling climate change will require decisive global action and significant investment and innovation, creating new industries, technologies, and professions. This offers a huge opportunity for both growth and job creation. The UK’s offshore oil and gas sector recognises this fact and was amongst the first major industries to publicly back the government’s net zero objectives through its Roadmap 2035. The UK’s demand for oil and gas, though much reduced in the future, is expected by the Climate Change Committee to continue for decades to come."
Source: NORTH SEA TRANSITION DEAL
Based upon OGUK’s Roadmap 2035: A Blueprint for Net Zero
The UK’s upstream oil and gas industry was one of the first major sectors of the economy to embrace the 2050 target when in September 2019, on behalf of the industry, OGUK released ‘Roadmap 2035: A Blueprint for Net Zero’, highlighting the role the sector can play to help the UK achieve the energy transition that is critical to a fully decarbonised economy.
A New Transition Partner: The Oil and Gas Authority (OGA)
Established in 2015, the Oil and Gas Authority works with the industry and government to maximise the economic recovery of UK oil and gas and support the UK government in its drive to reach net zero greenhouse gas emissions by 2050.
Created as one of the key recommendations of Sir Ian Wood’s 2014 Review of the UKCS, the OGA became an Executive Agency on 1 April 2015, which created operational independence from DECC (now the Department for Business, Energy and Industrial Strategy) to the fullest extent possible within the established boundaries, and gave us direct accountability for exploration and development decisions and approvals.
The Wood Report
UKCS MAXIMISING RECOVERY REVIEW: FINAL REPORT
“In addition to the economic importance, maximizing recovery of the UK’s indigenous supplies of oil and gas will help maintain security of supply as the UK transitions to a low-carbon future, with the DECC’s projections showing that in 2030 oil and gas will still be providing 70 per cent of the UK’s primary energy requirements.”
"The Wood Report", Sir Ian Wood, 24 February 2014
How will NSMP Meet the Challenge?
On energy sector decarbonization:
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Benchmarking and analysis to drive the active reduction of greenhouse gas emissions created by exploration, transportation and processing.
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Identifying and implementing opportunities for electrification that make the greatest impact in reducing emissions.
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Rapidly reducing and where possible, phasing out gas flaring across all operations.
On maintaining reliable domestic supply as demand ramps down:
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Providing reliable and cost-efficient midstream services to enable upstream shippers to maintain and extend production on existing fields
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Supporting asset life extension and new business by having capacity and being available over the long term
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Continuing to improve efficiency and uphold our industry-leading record of >99% availability
On transforming workers and supply chains for the new Net Zero economy:
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Exploring—in conjunction with our industry partners—ways of collaborating between oil and gas, renewables, hydrogen and carbon capture technology to accelerate the energy transition in the North Sea.
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Providing our people with the resources and new skillsets necessary to effectuate the transition
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Re-channeling resources derived today into researching solutions for tomorrow