OEUK underlines need for government to support UK oil and gas over imports while it builds out renewables
The leading trade body for the offshore energy sector, Offshore Energies UK (OEUK), has responded to a UK Government consultation on building the North Sea’s energy future.
The consultation, which closed 30 April, invited views on policies impacting the production of energy in UK waters, including government proposals to stop issuing new oil and gas licences.
The North Sea is a strategic national asset that has powered the UK economy and homes through oil and gas for the past 50 years. Currently 75% of the UK energy needs are met by oil and gas, with half of this coming from the UK Continental Shelf (UKCS), supporting 200,000 jobs across the country.
The North Sea is uniquely placed to support our energy future, boasting the second largest offshore wind capacity in the world and the geology to store over 78 gigatons of carbon dioxide in our reservoirs to decarbonise hard to abate sectors in the UK and beyond whilst responsibly producing oil and gas.
OEUK today said ongoing domestic production of oil and gas is critical while the nation also builds out supplies of renewable energy.
It warned changes to the oil and gas licence regime will have significant consequences for UK energy projects, people employed in the sector and the wider UK economy.
Independent government advisors, the Climate Change Committee (CCC), estimate the UK will require 13-15 billion barrels of oil and gas equivalent in the period 2025 to 2050 to meet its energy needs. The UK is currently forecast to produce less than one third of that demand.
Data within OEUK’s response shows with the right policy, the UK could produce seven billion barrels of oil and gas, meeting over half of the forecast demand. This could generate an additional £165 billion for the UK economy.
OEUK argues no new licensing will result in the UK being more reliant on imports of oil and gas to meet UK energy demand.
Commenting on the consultation, OEUK Chief Executive David Whitehouse says:
'Proposals to issue no new oil and gas licences will result in the UK being more reliant on imports of oil and gas to meet UK energy demand.
'The North Sea has powered the UK economy for the last 50 years and is uniquely placed to support our energy future. That means the build out of renewable offshore energy – wind, carbon capture and storage, and hydrogen – alongside the continued production of domestic oil and gas to meet the country’s needs.
'Put simply, with pragmatic policy, we can make sure our North Sea powers the nation for the next fifty years.
'Build on our strengths and we can deliver a modern industrial Britain, powered by homegrown energy, which supports jobs and opportunity in communities across the country.
'The UK will continue to use oil and gas for decades to come. We must prioritise our own North Sea production where we can deliver this at lower emissions to imported alternatives, contribute billions of pounds to the economy, and anchor the people and skills that will be needed now and in the future.'
Source: OEUK
