UK Oil Regulator Publishes New Emissions Reduction Plan

UK Oil Regulator Publishes New Emissions Reduction Plan
The NSTA said the plan 'places electrification and low carbon power at the heart of emissions reduction'.
Image by curraheeshutter via iStock

In a release posted on its website on Wednesday, the North Sea Transition Authority (NSTA) announced that a new emissions reduction plan published by the organization “has highlighted the need for action across the board on production decarbonization … to ensure the future of the industry and hit net zero targets”.

This includes action on flaring and venting and the electrification of oil and gas installations, the NSTA pointed out in the release, which noted that production emissions reduction is one of the NSTA’s three priorities, “alongside energy production and the transition to net zero”.

The NSTA outlined in the release that the plan covers “four clear contributing factors to decarbonizing the industry and makes it clear that for production to continue in the North Sea, it must also continue to become cleaner”.

“The plan places electrification and low carbon power at the heart of emissions reduction and makes it clear that where the NSTA considers electrification reasonable, but it has not been done, there should be no expectation that the NSTA will approve Field Development Plans and similar decisions that give access to future hydrocarbon resources on that asset,” the NSTA stated in the release.

“The plan also highlights three other emission reduction pathways: investment and efficiency, focus on inventory as a whole, with increased scrutiny of assets with high emissions intensity, and action on flaring and venting,” it added.

The NSTA noted in the release that the plan emphasizes that operators should take action and budget to reduce flaring and venting, “with the latter focused on methane, continuing the NSTA’s ongoing work on this”. The plan also sets out a clear requirement that operators monitor and reduce fugitive emissions, it added.

The NSTA also stated in the release that, in relation to inventory, there will be increased scrutiny of assets with high emissions intensity and their cessation of production dates.

“The NSTA recognizes that to secure production while reducing emissions overall, it is crucial to look at trade-offs between installations,” the NSTA said in the release.

“Closing some low-producing, high-polluting installations earlier could allow higher producing and cleaner new assets to come online while still reducing overall UKCS level emissions,” it added.

The NSTA stated in the release that it will apply the plan “in a reasonable manner” and added that it “will not pursue actions that could bring about significant unintended consequences simply because of specific wording in the plan”.

“The requirements outlined in the plan build on existing commitments made by industry, including in the North Sea Transition Deal, with operators having agreed to deliver 50 percent reduction by 2030, and invest GBP 2-3 billion ($2.5-$3.7 billion) on electrification,” the NSTA said in the release.

According to the NSTA, the plan was produced after “extensive public consultation and taking onboard feedback”.

NSTA Chief Executive Stuart Payne stated in the release that “the plan strikes the right balance in supporting industry in its work producing the oil and gas which we need and will continue to need in the coming decades, while at the same time playing its role in reducing greenhouse gas emissions”.

“The plan will help to secure the crucial part the North Sea will play in meeting the UK’s energy needs and provide reassurance that the industry can and does place a very high value in cleaning up production and cutting emissions,” he added.

In a statement sent to Rigzone commenting on the NSTA emission reduction plan, Mark Wilson, the HSE and operations director for industry body Offshore Energies UK (OEUK), said, “the UK offshore energy sector is committed to meeting the decarbonization targets and has made great progress already by reducing emissions 24 percent since 2018 with a 45 percent reduction in methane from flaring and venting in the same time period”. 

“It is recognized the importance of building on this achievement with the continued investment to deliver future decarbonization reductions,” he added.

“Offshore Energies UK has been engaged with the NSTA on the consultation for the OGA plan and provided a clear recommendation for industry to demonstrate ongoing ownership of the decarbonization journey, with regulatory intervention available as a backstop if required,” he continued.

In the statement, Wilson noted that a study to evaluate how the industry will meet decarbonization targets commenced earlier this year.  

“Initial findings of the study show a clear commitment from industry to meet the 2030 target of a 50 percent reduction of greenhouse gas emissions based upon the 2018 baseline,” he said.

“The study is taking a collaborative approach to its work and will include the role that technology can provide in delivering current and future decarbonization solutions which are not limited to electrification,” he added.

“As part of the OGA plan ongoing engagement will occur between industry and the NSTA to ensure that the full range of decarbonization opportunities are evaluated to meet the North Sea Transition Deal targets,” he continued.

OEUK noted in the statement that the NSTA publication follows a consultation with the industry which began in November last year.

“It calls for improved efficiency of oil and gas production, reduced flaring and venting of waste fossil fuels during production, new efforts to speed up decommissioning of ageing platforms, and a focus on lower greenhouse gas generation by using wind or other forms of low carbon power to generate electricity to run oil and gas platforms,” OEUK said in the statement.

To contact the author, email andreas.exarheas@rigzone.com


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Andreas Exarheas
Editor | Rigzone