Oil & Gas UK published its ‘2019 Economic Report Roadmap to 2035: A Blueprint for net-zero’ which highlights the industry’s positivity to move towards a net-zero future. The report presents the increasing demand for energy in an expanding global economy.
The leader aiming to a net-zero future is the UK, which energy landscape changes rapidly. The Committee on Climate Change proposed that the UK should aim to achieve net-zero GHG emissions by 2050, and 2045 in Scotland.
The draft orders to amend the 2050 greenhouse gas emissions reduction target in the Climate Change Act from at least 80% to at least 100%. This target, otherwise known as ‘net zero’, would constitute a legally binding commitment to end the UK’s contribution to climate change.
In the meantime, the UK’s ambition is fully supported by Chief Executive Deirdre Michie, who commented
Oil and gas companies are already in action, using their skills, expertise and resources and developing their energy portfolios in ways that will help move the UK towards net-zero.
Moreover, the report notes that the Committee on Climate Change (CCC) outlines six areas of specific focus in the drive to a net-zero economy, such as:
- Resource and energy efficiency
- Societal choices (e.g. less meat in diets)
- Extensive electrification
- Development of a hydrogen economy
- Development of carbon capture, usage and storage
- Changes in land use
The overall industry’s performance is improving and the UK sector is more competitive than it has been for years. The UK has to deal now with new investors that are approaching, as well as the UK sees many opportunities in its drilling activities.
Moreover, the UK offshore oil and gas sector is in favour of the development of carbon mitigating technologies which offset emissions resulting from the use of oil and gas in the wider economy.
The report adds that the offshore oil and gas production operations hold the 3% of the UK’s total GHG emissions. Also, the sector meets the 45% of the UK’s overall energy needs and will continue to provide energy security for decades to come, Deirdre Michie stated
Having an indigenous energy resource helps to ensure an energy supply we can control, regulate and access
Graham Hollis, senior partner for Deloitte in Aberdeen, concluded
The oil & gas industry remains a vital part of the UK’s energy mix and with an estimated creation of 40,000 new jobs, a crucial economic asset. While the report highlights that the transition to a more diverse energy mix is successfully underway, there is still work to do.
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