Oil and Gas Authority’s response to strategy consultation published
The Energy Transition Group (ETG) participated in comments made by IOM3. Richard Oblath FIMMM, Chair of IOM3 ETG commented, ‘The ETG’s input focused on taking into account the UK government’s legislation to achieve Net-Zero by 2050 highlighting, for example, the opportunity to utilise the current infrastructure for any carbon capture and storage projects.’
The revised strategy reflects the ongoing global energy transition. Oil and gas currently provide about 75% of the UK energy consumption and official government forecasts expect oil and gas to remain important to the UK’s overall energy mix for the foreseeable future, including as we transition to net zero.
The strategy requires industry to operate in a way consistent with net zero ambitions, lowering production emissions and making serious progress on the solutions that can contribute to the UK achieving net zero. The OGA believes the industry has the skills, infrastructure and capital to help unlock net zero solutions, such as CCS and hydrogen production.
In addition to the net zero obligation, the revised strategy also requires industry to work in such a way that encourages collaboration with the supply chain and actively support carbon capture and storage projects. The OGA will monitor governance closely and ensure that carbon costs are considered in its regulatory decisions.
The full response to the consultation on proposals to revise the MER UK Strategy can be found at bit.ly/34k6JwT