In a recent announcement, Rishi Sunak has highlighted the need for the United Kingdom to maintain a significant fossil fuel industry to avoid overreliance on foreign energy imports.
The Prime Minister stated that a quarter of the country’s energy needs will still be met by fossil fuels by 2050.
This declaration underscores the importance of a robust domestic fossil fuel sector, as it mitigates the potential vulnerability of being held hostage to the price fluctuations of imported energy.
Sunak emphasized that this reliance on oil and gas should not be seen as contradictory to the UK’s commitment to achieving Net-Zero emissions by 2050, but rather as an opportunity for the industry to demonstrate its ability to extract fossil fuels with significantly reduced production emissions.
Most industry outlooks indicate that traditional hydrocarbons will still be needed to meet 40%-50% of the world energy needs by 2050. This gives us some stark choices: reducing demand by almost half; finding and implementing new sources of clean energy to fill the void; or accepting that fossil fuels remain necessary but must be produced and used in a way that still supports environmental targets.
The reality is likely to be a combination of all approaches and clear policy, locally and globally, to drive the necessary investment will be crucial.
While the Paris Agreement targets should absolutely remain a priority, Sunak stressed the necessity of ensuring a secure energy supply for the UK. The disappointing recent cancellation of offshore wind projects has highlighted the urgent need to address the challenges associated with quickly approving and economically building renewable power generation plants, as well as upgrading the electrical grid accordingly – issues that are paramount to guarantee a secure supply while still achieving Net-Zero as planned.
The task of replacing, upgrading, and/or developing the required infrastructure is immense and will require substantial investment and time. Policy to drive this investment is essential and is needed soon. In terms of major infrastructure projects, 2030 is just round the corner and 2050 is not far away.
With major projects on the horizon, such as the 2030 deadline and the ultimate goal of achieving Net-Zero emissions by 2050, the government must act swiftly to ensure a smooth transition towards a sustainable energy future.
The Prime Minister’s announcement serves as a call to action for both the oil and gas industry and policymakers. It presents a unique opportunity for the industry to showcase its commitment to reducing emissions and operating sustainably. Simultaneously, it highlights the urgency of addressing the challenges associated with renewable energy infrastructure development.
As the UK navigates its energy transition, the government remains steadfast in its commitment to achieving climate goals while ensuring a secure and reliable energy supply. The fossil fuel industry, in collaboration with policymakers, must rise to the occasion and demonstrate that it can play a vital role in the country’s sustainable energy future.
Angus Milne is regional offshore manager for oil and gas at DNV.
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