Offshore Energies UK has today underlined that a robust process for Environmental Impact Assessments must be delivered at pace following today’s decision from the Court of Session. The judge has ruled that two North Sea oil and gas projects can continue development works while the arrangements for a revised environmental impact assessment are completed.
Development work can continue, however production from these fields will not begin until revised environmental consents are in place for each project.
The UK Government is looking to finalise its guidance on environmental impact assessments, following the Finch Ruling last summer. Industry recognises the importance of a legally robust and practical framework that aligns with the principle and outcomes of the ruling.
The UK offshore oil and gas industry was one of the first sectors to make a commitment to net zero by 2050 and remains committed to that goal. It has already reduced production emissions by 28% since 2018 and is on track to deliver reductions of 50% by 2030.
OEUK today reinforced official data which showed the UK is expected to use 15 billion barrels of oil and gas between now and 2050 but is expected to produce less than 4 billion barrels. OEUK has shown that unlocking an additional 4 billion barrels, while still not meeting domestic demand, adds over £200 billion to the UK economy, supporting UK jobs, and supporting a UK world class supply chain.
With significant oil and gas reserves around in UK offshore waters, OEUK said these should be used responsibly alongside renewable energy. It said to avoid a reliance on imported oil and gas, investors must be confident in the processes required to bring projects forward.
Commenting on the decision, OEUK Chief Executive David Whitehouse said:
“Today the court has confirmed that these projects can now move forward according to due process. Development work can continue, however production from these fields will not begin until revised environmental consents are in place for each project.
“The revised environmental impact assessment process which manages these consents must be robust and must be delivered at pace.
“Our domestic oil and gas remain a strategic asset for the UK. Industry takes its environmental responsibilities and the goal of net zero seriously which is why we need a robust process which provides clarity to investors, enables timely and predictable decisions, and provides certainty.
“We still have significant oil and gas reserves in our offshore waters and we should use them responsibly alongside renewable energy. Unlocking an additional four billion barrels adds over £200 billion to our economy, supports our jobs, and supports our world class supply chain with lower emissions than imports.
“If we do not produce it here in the North Sea, we will simply import it – paying less tax to the Treasury and creating a higher carbon footprint.
“As a society we are in a critical period for shaping the future of the North Sea, the UK’s energy system, the future of those working in the sector, the communities that depend on those jobs, and the wider UK economy. We must get this right.”
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