The impact of COVID-19 on the oil and gas sector
Date: 21 April 2020 | Time to read: 5 mins
According to Forbes, the UK is spending 32 times more on fossil fuels than renewables, and with carbon reduction being such a hot topic, it’s worth going back to the report published in August by the Oil and Gas Authority, in collaboration with Ofgem, The Crown Estate and the Department for Business, Energy and Industrial Strategy (BEIS), on energy integration in the UK Continental Shelf (UKCS).
The report highlights the oil and gas industry’s contribution to net zero targets through energy integration and decarbonising the oil and gas industry. But can you really decarbonise a carbon industry?
The transition from oil and gas towards a low carbon and renewable energy is a long-term investment, integrating clean energy technologies and enabling the supply chain to adapt and learn new skills.
According to the report, the UKCS could support, in combination with complementary investments in onshore energy infrastructure, around 60% of the UK’s decarbonisation requirements and there are already over 30 energy integration projects underway in the region.
Energy integration projects have the potential to be a significant contribution to the UK’s low carbon targets by 2050 enabling the oil and gas operators to move towards a greener future. BP for example, have set out ambitious plans to become net zero by 2050, and Equinor have committed to reduce net carbon intensity by at least 50% by 2050.
Perhaps the most obvious way forward is for oil and gas operators and service providers to harness the power of digital and existing data to enhance their visibility of industry skills and competencies, accelerating project planning and regulatory activities.
Leveraging existing oil and gas assets and understanding supply chain capabilities, essential for energy integration and Carbon Capture Storage (CCS), can preserve existing infrastructure value that has the potential to save 20-30% capital expenditures on specific decarbonisation projects.
By combining technologies in the energy industry and utilising the supply chain effectively, the oil and gas industry can not only improve project economics, but they can encourage innovation within the supply chain across oil, gas, renewables, and utilities.
We can help you learn about the energy integration and transition capabilities in your supply chain – speak to our team today.