- Industry delivers 4% decrease in emissions in 2023, a fourth consecutive year of reductions
- But oil and gas production must get cleaner and electrify to safeguard the sector’s future
- Emissions reduction plan will put operators on long-term pathways to net zero
The North Sea oil and gas industry made further progress on its transition to net zero by cutting production emissions 4% last year, contributing to an overall reduction of 28% between 2018 and 2023.
This includes a 49% reduction in flaring in the same five-year period – due to more efficient operations, stricter controls and fines for unpermitted activity.
North Sea industry has committed to reaching net zero by 2050, and a 90% emissions reduction by 2040, while also agreeing interim targets with government, including a halving of emissions by 2030. The latest Emissions Monitoring Report from the North Sea Transition Authority (NSTA) shows that progress has been made and the 2030 target is within reach, but more work is needed to ensure that industry meets and surpasses key emissions targets and gets on long-term reduction trajectories.
Half of the reductions achieved between 2018 and 2023 were through active emissions reduction measures and the decrease reflects a combination of the NSTA’s robust and proactive approach and industry efficiencies and investment in cleaner technologies.
On the other hand, even as overall emissions have gone down, emissions intensity – greenhouse gases emitted for every barrel produced – is projected to have increased, as production has also fallen.
Higher emissions intensity is common in more mature basins, but this should not be used as an excuse to let performance slip. It is important that UKCS production continues to compare favourably with other nations to retain industry’s social licence to operate.
The NSTA continues to hold industry to account on its net zero commitments and published its emissions reduction plan, or OGA Plan, in March to put operators on track to reach net zero.
Hedvig Ljungerud, the NSTA’s Director of Strategy, said: 'Cutting greenhouse gas emissions by more than a quarter in five years is an impressive achievement in the North Sea, where operators have taken real action and made substantial investments. However, for domestic production to be justified, it must continue to become cleaner.
'The NSTA will hold industry to account on emissions reductions, including on decisions today that could have an impact for decades to come, to ensure the nation can benefit from its domestic resource even as we transition.'
North Sea industry can play a vital role in accelerating the transition while supporting the nation’s energy security. The UK still needs oil and gas and, even as demand declines, is likely to remain a net importer out to 2050. The carbon intensity of producing gas in the UKCS is on average almost four times lower than importing LNG, making a case for continued domestic production, in addition to the wider economic benefits. The industry also has much of the expertise and infrastructure needed to deliver carbon and hydrogen storage projects which are pivotal to meeting net zero.
However, the sector’s production emissions still account for just over 3% of overall UK emissions, and gas imported from Norway via pipeline is cleaner than UK production, despite similarities between the two basins, indicating there are opportunities to improve.
Industry has been developing proposals for more than a dozen major decarbonisation projects, mostly involving platform electrification and flaring reduction. For example, TotalEnergies recently committed to a significant investment in a flare gas recovery system at the Elgin-Franklin field. Also, since last year’s report was published, the potential first-power date for a major, full-electrification scheme has been moved forward and a partial electrification project has been sanctioned. An electrification-ready development also received consent.
Operators should quickly press ahead with decarbonisation proposals, as the volume of emissions which can be avoided is diminished the longer it takes to commission a project. Electrification, or an alternative source of low-carbon power, has the greatest potential for emissions reductions, as fuel combustion for power generation makes up four-fifths of production emissions, and so it is important that operators make final investment decisions on more of these projects.
Background
Read the 2024 Emissions Monitoring Report here.
The Emissions Monitoring Report dashboard can be accessed here.
The OGA Plan calls for concerted action across four areas: electrification and low-carbon power, flaring and venting, investment and efficiency, and focus on inventory as a whole, with increased scrutiny of assets with high emissions intensity.
Source: NSTA
