The UK's Oil & Gas Authority (the OGA) has today (6 May) launched a consultation to refresh its core aims, looking in particular at net zero. Last week (30 April) I spoke at a Westminster Energy, Environment and Transport Forum event for the natural gas sector, and the points I made are very similar to the themes in this consultation. In brief:
- The sector has the skills and expertise we need both for the transition and for the net zero economy: the role of carbon capture and storage (CCS) and a network and infrastructure for hydrogen gas will be key aspects of a net zero economy.
- It's critical to reduce greenhouse gas emissions across the entire supply chain on a life cycle basis and as such we need to obtain those resources that we do still need from areas with strong environmental standards. Domestic supply is therefore important from an environmental as well as an energy security perspective.
- The industry will need to embrace the transition both from a social licence to operate perspective and to address the rising tide of legal challenges: shareholder and stakeholder activism and climate change litigation risks need to be considered. A wider legal perspective beyond the regulatory carrots of incentives and market mechanisms is going to be necessary.
For those in the sector, do get involved in the consultation.
The OGA believes that maximising economic recovery of oil and gas need not be in conflict with the transition to Net Zero and that the industry has the skills, technology and capital to help unlock solutions required to help the UK achieve the Net Zero target