Environment Report 2016

Potential Environmental Impacts Atmospheric emissions have several potential environmental impacts, such as stratospheric ozone depletion, ground level ozone formation, ocean acidification and increases in GHGs. The potential impact of ozone formation and acidification is mitigated by the geographical location of most offshore installations, which are a long way from the coastline and human populations. The UK Government has made several commitments to reduce total UK atmospheric emissions through international agreements, such as the 2015 Paris Agreement and through domestic legislation such as the Climate Change Act 36 and the Fifth Carbon Budget 37 . The UK has also set targets of 15 per cent energy consumption from renewables by 2020 38 . However, the move to a lower carbon economy in the UK must be achieved in a responsible manner. Everyday life depends heavily on ready access to affordable and reliable energy from a secure domestic source, as well as a variety of oil-derived products such as textiles, medicines, cosmetics, electronic equipment, plastics, fertilisers and cleaning products. Most plausible estimates suggest that at least half of the world’s energy needs will continue to be met by oil and gas for the foreseeable future. Reducing GHG emissions is a global challenge that requires a global response and the UK Government’s intention to ratify the Paris Agreement as a non-EU signatory is supported. A shared responsibility exists for all companies, governments and citizens to consider the carbon intensity of products and services that are produced and consumed. Consideration should also be given to life cycle emissions associated with products and services. Exploration, production and transport of hydrocarbons make up a small percentage of overall oil and gas life cycle emissions – approximately 9 per cent for oil and 16 per cent for gas 39 . The offshore oil and gas industry aims to reduce emissions from operations by taking part in emissions trading schemes and implementing energy efficiency improvements. The need to ensure equipment is maintained for safety and reliability reasons also means that high levels of energy efficiency are sustained. Gas production from the UKCS is a critical element for the UK security of energy supply and its decarbonisation policy. Indigenous gas production permits greater deployment of renewables without incurring the economic risks associated with dependence on gas imports to back-up variable renewable output. In other words, maximising economic recovery of domestic gas from the UKCS will assist in delivering wider energy and climate policy objectives. As the UK negotiates its exit from the EU, it is essential that the UK Government and the oil and gas industry work together to ensure that efforts continue to manage the environmental impact of the industry, balancing this with security of supply.

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36 See www.legislation.gov.uk/ukpga/2008/27/contents 37 See http://bit.ly/CBTccc 38 See http://bit.ly/RHT2020 39 See http://bit.ly/GHGvNG. The data came from the US. UK data could not be sourced.

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