The oil and gas industry’s social licence to operate is under serious threat.
That’s the warning from Chairman of the Oil and Gas Authority (OGA), Tim Eggar, who has said the sector must do more to drive down emissions. tackle climate change and work towards net zero.
Addressing senior industry leaders at a meeting of the Maximising Economic Recovery (MER) UK Steering Group earlier this week, he added that there is “no scope of a second chance” and advised industry to develop a series of decarbonising measures ahead of the COP26 climate conference later this year.
This included calling for the offshore oil and gas industry to commit to “clear, measurable greenhouse gas targets” and stressing the sector must make with real progress on methane.
Mr Eggar said businesses must also demonstrate progress on carbon capture and storage, show measurable progress on energy integration opportunities, such as electrification projects, and showcase a diverse array of skills and workers ready for the future.
He added: “There has been too much navel-gazing. We have to act much, much faster and go farther in reducing the carbon footprint.
“Our energy systems must keep improving at pace, to become cleaner and more efficient and this requires ambitious thinking, capital investment and bold leadership. Action not just talk or more analysis.”
Deirdre Michie, Chief Executive of OGUK, said: “We are an industry in action. Roadmap 2035: a blueprint for Net Zero is one of the first major industrial responses to government plans to reduce or offset carbon emissions to net zero by 2050 in the UK and 2045 in Scotland.
“We will continue to work closely with all industry regulators including the OGA to deliver a safe, sustainable and competitive industry that realises its full potential in the transition to the low carbon future we all want to see.”