New net-zero requirement for UK oil and gas industry

A revised strategy from the Oil & Gas Authority (OGA) has been submitted to Parliament, featuring for the first time an obligation on the oil and gas industry to support the UK’s net-zero target.

Oil and gas currently provide about 75 per cent of the UK energy consumption and official government forecasts expect oil and gas to remain important to the UK’s overall energy mix for the foreseeable future during the transition to net-zero.

During that period, the strategy requires industry to operate in a way consistent with net-zero ambitions, including lowering production emissions and making progress on solutions that can contribute to the UK achieving net-zero, such as Carbon Capture and Storage (CCS) and hydrogen production.

In addition, the revised strategy also requires industry to work in such a way that encourages collaboration with the supply chain and actively support carbon capture and storage projects. The OGA will monitor governance closely and ensure that carbon costs are considered in its regulatory decisions.

The OGA will track, monitor, benchmark and report on this overall emissions reduction, and published its first benchmarking report on emissions from flaring and venting earlier this year.

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