The report is published amid calls from OGUK, the leading representative body for the UK offshore oil and gas industry, for continued government support to protect the sector as it struggles in the face of a trio of pressures including volatile oil and gas prices and operational disruption due to Covid-19.
The Business Outlook 2020: Security of Supply Report, which considers the UK’s energy landscape shows that production from the UK Continental Shelf is enough to provide 63% of the UK’s oil and gas needs and 46% of the country’s total energy.
The report also outlines the urgency of ensuring the sector’s resilience to maintain a secure, affordable energy supply. This is crucial as the sector is already playing a key role in contributing to the UK’s low-carbon future, with oil and gas companies expected to continue to diversify and become the driving force behind for CCUS, hydrogen and offshore renewables as the country looks to achieve net-zero emissions by 2050.
Mike Tholen, Sustainability Director OGUK, said: “The report highlights the critical role oil and gas continue to play in meeting the UK’s energy and manufacturing needs. Despite lower demand due to lower economic activity in recent weeks, gas remains as the biggest generator of electricity in the UK and represented 40% of the total last year.
“It is crucial to support our industry in operating as effectively as possible in these challenging conditions and that the sector’s capabilities and skills are protected both now and in the future. The pressures of a volatile oil price, the lowest gas price we’ve seen in a decade and operational disruption due to Covid-19 means our supply chain is at breaking point.
“This is why we ask Government today to continue to stand by this vital industry and work with us on developing a sector resilience package to get us through this period. This will help ensure we can continue to provide secure and affordable energy now and in the future, alongside driving the work needed to achieve net zero emissions”
The OGUK Business Outlook Security of Supply Report can be downloaded here.
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/22042020/oguk-report-highlights-critical-role-of-industry/