Economic Report 2020

Providing cleaner energy – addressing oil and gas industry production emissions

In 2019, total UK greenhouse gas emissions were 435 mtCO 2 e, 42 39 per cent lower than 2000. This reduction has mainly been driven by the transition away from coal as the UK begins to adopt alternative sources of fuel. This trend must continue and needs to be supported by clear pathways to decarbonise all sectors. Direct oil and gas production emissions made up 4 per cent of the overall total (approximately 18mtCO 2 e) in 2018. Most emissions from the sector are CO 2 (which have decreased by 20 per cent over the last decade), followed by methane. In 2020, the oil and gas sector published emission targets that map out how the sector will achieve net-zero by 2050. 43 The targets are aggressive and will see the basin incrementally decrease emissions over the next

three decades by 100 per cent compared with 2018 levels. Industry has committed to reporting on their progress on an annual basis and OGUK will be publishing a supporting report to demonstrate the achievements industry is making in reaching net zero. The targets set out a radical reduction in industry emissions with deadlines between now and 2050. In the next decade, industry has committed to reducing emissions by 50 per cent and 90 per cent by 2040 compared to a 2018 baseline. These targets will apply at a basin level and will encompass all greenhouse gas (GHG) emissions including: offshore installations, onshore terminals, processing UK oil and gas, offshore shipping to support transport of oil and gas and aviation transport.

UK Greenhouse Gas Emissions

Energy Supply

Business

Transport

800

Public

Residential

Other Greenhouse Gases

700

600

500

400

300 MtCO2e

200

100

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 0

Source: BEIS

42 https://data.gov.uk/dataset/9a1e58e5-d1b6-457d-a414-335ca546d52c/provisional-uk-greenhouse-gas-emissions-national-statistics 43 https://oilandgasuk.co.uk/wp-content/uploads/2020/06/OGUK-Production-Emissions-Targets-Report-2020.pdf

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