OGUK Chief Executive Deirdre Michie OBE provides an overview of the North Sea Transition Deal
The UK offshore oil and gas industry was one of the first countries to sign-up to legally binding commitments to reach net-zero by 2050. Now we will be the first industry in a G7 country to deliver a transformational deal in partnership with government to see accelerate the delivery of those commitments.
For some months, the UK offshore oil and gas industry worked with the UK government to create the North Sea Transition Deal. This agreement will oversee the metamorphosis of the UK from where it is today to being a world leader in a green and clean future, all while maintaining our reputation as an industrial success story.
For years, our members have been setting out to diversify; taking on new opportunities in the field of sustainability and developing pioneering low-carbon technologies that will help us tackle climate change head-on. Sixty-two per cent of companies who responded to OGUK’s Business Sentiment Survey reported that they provide goods and services which can help reduce their clients’ carbon footprint. It also showed that 82% of supply companies plan to advance their diversification efforts over the next two years, as offshore renewables, CCUS, hydrogen and utilities develop as key new markets. We need to move at pace to ensure we grab the opportunity to become world-leaders in these areas and this deal will help us do this.
As an industry which supports some 270,000 jobs based across the UK, provides secure and affordable energy to millions, and contributes billions of pounds to the economy, the transition to a lower carbon future is one we must get right. We will only get one chance.
Having powered the country for over 50 years, the UK’s oil and gas sector’s energy expertise is crucial to developing the green innovation required to see the UK achieve net-zero emissions by 2050. The North Sea Transition Deal not only harnesses the expertise within our talented industry, but future proofs jobs, and therefore, protects our energy communities.
Sixty-two per cent of companies who responded to OGUK’s Business Sentiment Survey reported that they provide goods and services which can help reduce their clients’ carbon footprint
We will continue to provide the affordable energy we need through oil and gas, produced with ever-decreasing emissions, while using our infrastructure to engineer the solutions that will be required for the future.
Our industry is committed to being a positive partner in efforts to reduce the UK’s carbon footprint, supporting businesses, jobs and the many millions of consumers who are on the journey with us. For these big changes to come to life, the North Sea industry needs support to capture these local and global opportunities, standing ready to embrace new roles and projects and positively present our expertise in that shop window of a diverse energy pick-and-mix.
Transitions are no easy feat. With over fifty years of expertise, a highly skilled workforce and the vigour to innovate, industry can be an able partner on this journey – and with this new deal we have our nation and our government’s important support.