Anniversaries are opportunities to pause and reflect. As Programme Manager for the North Sea Transition Deal (NSTD) which just marked its third birthday, I can honestly say it’s been a remarkable journey so far.
The NSTD is just as important today as it was at the start. Like any three-year-old, we are seeing it get stronger, socialise with other groups and make its mark in how it shows up.
We’ve been nurturing the NSTD over the last three years to introduce new ways of thinking, new strategies and now we are able to watch it become business as usual – it has gone beyond the beginning.
We’ve progressed from a ground-breaking initiative forged between our industry and government, to a powerhouse in the climate leadership conversations recognised around the world.
While it’s only three years old, the Deal is growing in maturity, helping us accelerate the transition to a more sustainable and low-carbon energy mix.
As we blew out the candles on the cake celebrating the Deal’s third birthday in OEUK’s offices, it was a timely moment to reflect on where it began.
Back in 2021, it was the first of its kind among G7 countries to set out an ambitious plan for how our sector and the UK Government would work together to deliver the skills, innovation and infrastructure required to meet the UK’s carbon reduction targets of net zero by 2050.
And current day, we have delivered real progress – I’m delighted our sector has achieved a commendable 24% reduction in greenhouse gas emissions since 2018, demonstrating our commitment to environmental stewardship with our Methane Action plan and guidelines helping support this process.
Further efforts to decarbonise the energy supply include pursuing initiatives to use electricity instead of gas-powered turbines to power offshore North Sea facilities.
Exclusivity agreements have been awarded to 13 projects seeking INTOG (Innovation and Targeted Oil & Gas) licences for wind generation some of which will help facilitate this change.
We’ve seen 27 licences awarded for offshore carbon storage and looking ahead, we expect the green light to be given for investment in at least one track1 carbon capture and storage project this year.
We are working closely with others to develop a CO2 import capability to make the most of the UK’s resources to help Europe decarbonise.
There is now a hydrogen strategy in place and the Government has passed an Energy Act that sets out business models for hydrogen.
It’s not just about strategies and legislation, but action. 2023 saw the Government award funding to 11 successful electrolytic hydrogen projects under its first hydrogen allocation round which involves several of our member companies.
Within the past three years, we’ve been busy driving supply chain transformation. Memorable moments include our ‘Harnessing the Potential’ Supply Chain Roadmap which outlines how the UK’s world-class companies can transform to support jobs, economic growth, and innovation well into the future.
On this journey, we’re doing all we can to safeguard and transition thousands of existing jobs while creating another 40,000 new jobs by 2030.
These include those in oil and gas plus offshore wind, carbon capture storage (CCS) and low-carbon hydrogen production.
Underpinning all this progress are the fantastic, skilled people in our industry. In the past three years, we’ve developed tools to ensure leadership and promotion processes are fair and inclusive.
Another highlight was securing funding for the Centre for Doctoral Training (CDT). which addresses key areas in geoscience and its role in the low carbon energy transition and challenge of net zero.
Good progress is being made on a shared skills passport enabling people to work and move seamlessly across the different types of energy opportunities offshore.
Throughout the past three years, we have been proud to share what we’re doing with other countries, other industries, and even other sector deals.
As the best in class for climate leadership – we have a gold star in our jotters. I’m delighted to say the NSTD has gone international, we have hosted delegations from around the world including South Africa, Malaysia, Canada and Element NL, our equivalent in the Netherlands.
Through our commitment to the NSTD, we are setting the bar high and helping other nations to follow suit.
As we look towards the year ahead, there is no doubt that the NSTD will come under scrutiny, like any other initiative, as it finds its place among global efforts to deliver net zero.
Continued fiscal uncertainty risks slowing our progress, but we must maintain the momentum to realise our ambition.
Like most three-year-olds, there will be stumbles and hurdles to overcome but I believe our commitment to the Deal means we have the resilience and determination to achieve a homegrown energy transition that builds on our strengths and benefits our whole society.
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