Offshore Energies Magazine - Issue 55 Spring 2023

UK 'must manage rate of change'

Analysis by business consultancy EY has challenged the Scottish government’s plea for the northeast – and Aberdeen – to accelerate the end of the offshore oil and gas industry. Commissioned by the government as part of its energy strategy and Just Transition plan, the report shows that Scotland’s emissions will rise and jobs and prosperity tail off if the country pushes ahead as fast as it has planned. The oil and gas industry added £16bn of gross value to the northeast, equivalent to 9% of total Scottish GDP in 2019. EY's analysis shows the Scottish economy would lose £11bn/yr under the existing transition plans Nearly all the jobs in the sector – 25,000 or 98% – are in Aberdeen, meaning any decline would affect that city far sooner and harder than anywhere else. OEUK said the new analysis reaffirms the ongoing need for domestic production as Scotland decarbonises its energy. "Increasing reliance on imports would be bad for Scottish jobs, the economy, and our climate goals, because, as this report shows, imports tend to be associated with a higher carbon footprint," it said. "Our brilliant skilled people, world class expertise, and unrivalled capabilities mean we are well placed to realise a successful offshore energy future for Scotland," OEUK added. "We are reviewing this paper in full with our members and look forward to responding to the consultation. The new analysis reaffirms the ongoing need for domestic production as Scotland decarbonises its energy. "Increasing reliance on imports would be bad for Scottish jobs, the economy, and our climate goals, because, as this report shows, imports tend to be associated with a higher carbon footprint," it said. Separately, EY estimates that it will be 2025 before Scotland’s GVA is expected to finally climb above where it was before the pandemic struck. 'Go slower,' EY advises Scotland

London's Energy Institute (EI) is now the publisher of BP's annual Statistical Review of World Energy . The annual data-set that gives country-by-country and region-by region breakdowns of production, consumption, reserves and trade in all the different kinds of energy was first published by BP in 1952. The news coincided with the February 28 start of International Energy Week – formerly IP Week – in London. Not all links with the report are severed though: BP will provide continuing support for the review. The The energy transition will become unaffordable if the UK moves too hastily from oil and gas production to decarbonised energy, the CEO of the North Sea Transition Authority Stuart Payne told this year’s International Energy Week in London late February. "Turning off the taps today will not deliver a clean, resilient energy system tomorrow. There is a fantastic new industrial revolution available to us, anchored around the energy transition." he told the event, formerly International Petroleum Week ( see below ). On the other hand, he said, "if we can overcome the policy, technical and financial challenges, the UK and the North Sea has the opportunity to play a massive role in this revolution." He warned that industry is operating in a polarised external environment which could result in these capabilities being lost before the opportunities of the new technologies are sufficiently scaled up. "It is not just the skillset of the current workforce we need for the transition but those of the future workforce too. We need the next generation to see the North Sea as a viable place for a career," he said. The UKCS is resource rich in offshore wind; it has 6bn barrels of oil and gas to be produced; there is a huge network

UK major will also have a place on the new advisory board. And as the EI’s new partners, KPMG and Kearney have also committed funding and sector expertise. BP chief economist Spencer Dale said the "the Energy Institute was the perfect new custodian." EI president Juliet Davenport OBE HonFEI said the review would continue to provide the vital data and insights needed by the industry, its workforce and wider society. Data compilation will continue to be undertaken by Heriot-Watt University . opportunities on the site including 12 capex projects that have been added in the past three months, alongside two opex projects in the same time period. Initially launched as anoil and gas portal in 2010, Pathfinder has been regularly updated to meet changing needs and now extends to decommissioning campaigns, offshore wind and carbon capture and storage opportunities. of pipelines and infrastructure already in place on and offshore; and there is up to 78 GT of carbon storage (CCS) potential. And the NSTA is keen to see as much of the resources recovered as possible: licensees that it suspects of dragging their feet with exploration work, such as shooting seismic, have been fined. There is potentially up to £220bn of expenditure in the North Sea between now and 2030 alone, split between oil & gas, offshore wind, CCS and hydrogen. 'Pathfinder' oils the wheels Business opportunities in the North Sea are getting increasingly easy to access, the NSTA has said. Its Energy Pathfinder update shows that the crucial subscriber base rose 43% in 2022 and now boasts over 1,700 active users from both operators and the supply chain. There are 136 live contract

EI takes on BP's Statistical Review

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