The leading representative body for the UK offshore energy sector, Offshore Energies UK (OEUK) has responded to the government’s publication of updated supplementary guidance on the environmental impact for oil and gas projects in UK waters.
OEUK says its members can now resume the Environmental Impact Assessment (EIA) process for new and existing applications and projects. OEUK said the guidance is an important step in ensuring the responsible production of oil and gas produced in UK waters, alongside the acceleration of homegrown renewables.
While the guidance focuses on so-called 'scope 3' emissions – ensuring operator companies accurately report the full impact of the oil and gas produced in UK waters – industry today said it is critical that home produced resources remain the provider of choice over imports, which are often produced with greater emissions. Oil and gas produced within the UK Continental Shelf pays taxes, supports jobs and the wider national supply chain including manufacturing, engineering and service firms.
The government’s independent advisers, the Climate Change Committee, say that even if the UK meets its current path toward the target of net zero carbon emissions by 2050, UK homes and businesses will still use between 13 and 15 billion barrels of oil and gas. Today, the UK is on track to produce only 4 billion of those barrels with companies warning even this is at risk. However, with supportive policy the UK could meet half of that oil and gas demand supporting jobs, energy security and economic value for the UK.
This guidance comes at a pivotal moment for the UK economy and its North Sea energy sector, as the government prepares to make major decisions on the future of the oil and gas fiscal regime and licensing. Key developments expected over the coming months also include the government’s industrial strategy, launch of Allocation Round 7, reforms to national infrastructure planning to support clean power targets, and potential changes to the UK electricity market.
OEUK has said the UK needs a pragmatic energy strategy which supports homegrown energy, secures jobs, attracts investment, cuts emissions and delivers secure supplies of fuel, power and products.
OEUK Chief Executive David Whitehouse, said:
'This is an important next step. The publication of this guidance enables firms to move ahead with the process to responsibly develop projects that add jobs and value to the UK economy and boost energy security. It’s important that firms and their people can plan ahead and make investments in UK oil and gas projects critical to our economic and industrial future.
'The UK’s offshore energy industry takes its environmental responsibilities seriously and has reduced emissions from oil and gas production by 28 per cent since 2018. The North Sea is held up as one of the most robustly regulated sectors in the world and our approach is recognised internationally as an example of good practice.
'Energy security is national security. In an increasingly volatile world, the widening gap between the energy we produce and what we import matters. Oil and gas produced in the UK must remain the provider of choice over imports which are often associated with higher emissions, fall outside of our regulatory control, contribute no UK taxes and support no UK jobs. Accelerating offshore wind, carbon capture and storage, and hydrogen alongside domestically produced oil and gas supports the economy, jobs and safeguards the supply chains we need to build our energy future.'
Source: OEUK
