ENERGY NEWS
11
JULY 2021
UK NORTH SEA
Energy Review By Tsvetana Paraskova
Opportunities for the UK offshore industry in the energy transition, plans and new guidance for emissions reductions, trading updates, and project implementations featured in the UK oil and gas sector at the end of May and in June.
The UK oil and gas sector is recovering from the COVID impact and is poised for a major transformation as it positions itself for a lower-carbon future, according to the 33rd Oil and Gas survey conducted by Aberdeen & Grampian Chamber of Commerce’s Research Chamber in partnership with the Fraser of Allander Institute and KPMG UK. A total of 75% of contractors anticipate moving into renewables work over the coming three to five years—the highest level recorded since the question was first asked in 2015. On average, they believe oil and gas will account for less than three quarters of their business activity by 2025 – down from the current average of 86%, the survey found. In the six months to April, contractor confidence in the UK Continental Shelf (UKCS) has significantly improved from a net balance of -76% reported six months ago to +6%. This is a welcome rise from the expected forecast reported six months ago where 58% of contractors expected the outlook to worsen, according to the survey. “The industry is on the cusp of transformation and much of our findings reflect the collective sense of anticipation. It certainly feels that in Aberdeen we are heading towards the ‘new normal’ after a long period of reliance on carbon-based energy sources,” Martin Findlay, senior partner at KPMG in Aberdeen, said. The UK could become the ‘Silicon Valley of energy’, OGUK Chief Executive Deirdre Michie said at the speech opening the UK offshore oil and gas industry’s Annual Conference on 1 June.
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With the right support, the UK could be the global leader in the critical areas of the future, such as emissions reduction, clean energy, and low-carbon technologies, she added. “We are choosing to be responsible and drive down our industry emissions while investing in the energies of the future – at a pace which is leading the way globally,” Michie said.
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