Economic Report 2020

Embracing new opportunities — the new energy landscape

As outlined, oil and gas will continue to have a key role to play in an increasingly diverse energy mix and it is important that domestic production continues in line with this to support energy security. In addition, the sector will also make a major contribution to the transition to net zero. Many of the skills, expertise and technologies held within the oil and gas industry will also be crucial in the development of net-zero solutions at scale. Indeed, one of the key risks of the current precarious economic situation is that these could be lost from the UK, to the detriment of achieving a fair and managed energy transition. The oil and gas industry was one of the first industrial sectors to welcome the commitments to net zero and has set out a strategy, Roadmap 2035, which outlines the contribution the sector can make throughout the transition. 41 The key themes within Roadmap 2035 are: helping meet UK energy needs; supporting net zero; developing people and skills; driving technology and innovation; and growing the economy and exports. Good progress has been made since its launch in September 2019, including, but not limited to, the development of production emissions targets, launch of the Diversity & Inclusion Task Force, the establishment of the National Decommissioning Centre and upcoming National Subsea Centre. Work is also ongoing to raise visibility of opportunities across the supply chain through OGUK’s Share Fair Spotlights and the Energy Exports Conference. There are very significant opportunities for oil and gas companies and their supply chain to diversify across the energy landscape. Developments in new technologies

are progressing across the UK, from Shetland to South Wales. As part of this transition OGUK, along with other stakeholders, has continued to progress a North Sea Transition Deal which will provide the framework for increased investment and earlier and more co-ordinated development of these projects. This will help accelerate the energy transition and reduce UK-wide emissions. Alongside this, it will help to open up new markets for the domestic supply chain to service at home and abroad and grow overall employment over time. OGUK proposals, which are continuing to be worked with Government as of November 2020, centre on:

• Providing cleaner energy by reducing the sector’s own emissions • Helping drive the development of CCUS and hydrogen production, at scale • Transforming the oil and gas supply chain so that it underpins the full energy landscape at home and abroad • Developing people and skills to help secure, stimulate and create tens of thousands of new jobs

41 https://roadmap2035.co.uk/

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