The Huddersfield born Labour prime minister Harold Wilson famously coined the phrase “A week is a long time in politics”. Recent events in Westminster certainly bear that out.
After weeks of financial turbulence and days of uncertainty, the appointment of Rishi Sunak as the UK’s Prime Minister in October brought a sense of stability- a key theme in his first speech as Conservative leader. At BEIS, we now have Grant Shapps as the new business secretary.
This new era gives us a chance to refocus attention on the crucial issues facing the nation, including helping people pay their winter energy bills, and keeping the lights on while commodity markets remain volatile.
While these require urgent action, we know that long-term thinking provides the basis for delivering the low carbon energy system of the future that we are all committed to delivering. The new administration faces challenges that include ensuring security of energy supply, providing affordable and cleaner energy and driving economic growth. The offshore energy industry has a vital role in helping them make that happen, but it needs stability and certainty.
© Supplied by OEUKWe are doing much of that work as part of the North Sea Transition Deal (NSTD). As programme manager for the Deal, I can report that progress is happening at pace. My last article for Energy Voice shared the progress being made in all five commitments, but the unstable fiscal and political regimes since then has resulted in some questioning whether the NSTD is on track.
The Deal was designed to be a quid-pro-quo between the industry and government, but it is beginning to feel like it’s all quo and no quid. At times, it feels like there is more stick than carrot – but what I continue to see is a strong appetite to make the change…industry seem to be finding their own carrots.
We recently published our Emissions report which confirmed the oil and gas sector is exceeding progress against its emission target with greenhouse gas emissions from the production, transport and processing of North Sea hydrocarbons down by more than 20% since 2018.
Our members are working hard to modify platforms, rationalise energy consumption and ensure flaring, venting reduction and abatement technologies are widely applied across production facilities on the UK Continental Shelf.
I recently attended the launch of ExxonMobil Solent Cluster, showing what can be done in the region for Carbon Capture and Storage. This is on the back of OEUKs first ever CCUS report, ‘CCS and the opportunity for the supply chain’. The NSTD is in action, and it is going well.
However, there is still more carrot needed. We need the government to provide stable economic conditions for companies to invest and give the go-ahead for large capital investment projects like replacing gas and diesel with electricity to power offshore platforms. Setting these projects in motion would give a huge boost to emission reduction programmes, but we’ll need clear regulatory frameworks around offshore network connections, guidance on planning for offshore wind projects and a timely grid connection for oil and gas platform electrification. Our world-class supply chain needs certainty, and they need it now.
At the heart of the Deal, is our commitment to People & Skills. We will be focusing on this tied in with Environment, Social and Governance and the business imperative of inclusion at our Business Breakfast on November 8 at P&J Live. We look forward to a lively discussion about how we encourage innovation, disruptive thinking, and brave decision-making, all of which will be essential to drive action and make net zero possible. If you are quick, you might still secure a place. I’ll bring the carrots.
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