Offshore Energies UK’s (OEUK) 2025 Enterprise Outlook report reveals that, beneath the appropriate enterprise situations, half of the 13-15 billion barrels of oil and fuel the UK is projected to wish by 2050 could possibly be produced at residence, a launch despatched to Rigzone by the OEUK staff acknowledged.
This is able to add as much as GBP 150 billion ($193.7 billion) of gross worth to the UK financial system on high of the GBP 200 billion ($258.3 billion) from deliberate manufacturing, safeguarding vitality safety, jobs and decrease carbon emissions alongside an acceleration of renewables, the discharge famous.
“The unbiased Local weather Change Committee estimates the UK requires 13-15 billion barrels of oil and fuel by 2050, the goal date for the financial system to realize web zero,” OEUK stated within the launch.
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“The UK is on observe to provide 4 billion of those barrels. But the report finds with the appropriate polices to encourage companies to take a position, one other three billion barrels could possibly be produced at residence to fulfill half of the UK’s wants quite than rising its reliance on imports,” it added.
“The report additionally finds that by 2050, when UK electrical energy demand has greater than doubled, oil and fuel will nonetheless kind a fifth of UK vitality wants,” it continued.
OEUK highlighted within the launch that the publication of its Enterprise Outlook coincides with authorities consultations with business on the way forward for the North Sea and the oil and fuel fiscal regime.
“Within the coming months interlinked choices are additionally anticipated on the UK Authorities’s Complete Spending Evaluation and new Industrial Technique in addition to up to date environmental pointers for oil and fuel initiatives,” OEUK identified within the launch.
“In launching its consultations, the federal government dedicated to significant engagement with business. OEUK has stated this continued engagement is important to creating the globally aggressive enterprise atmosphere wanted to anchor excessive worth jobs and funding within the UK,” OEUK added.
In its report, OEUK famous that UK oil and fuel manufacturing decline has accelerated during the last 5 years. The report highlighted that this has averaged 9 % since 2020 however added that it “will be stemmed”. OEUK’s report outlined that this development “has been pushed each by declining funding within the basin and different locations proving extra enticing”.
OEUK stated within the report that the problem in 2025 is to drive funding again into the UKCS within the face of continued enterprise uncertainty.
In OEUK’s launch, OEUK Chief Government David Whitehouse stated, “the way forward for the North Sea is in our palms”.
“Our report reveals as we work collectively to speed up renewables the UK should benefit from its personal oil and fuel – or select to extend reliance on imports. We’re totally engaged with asking coverage makers to decide on a practical path to the low carbon, high-growth and safe financial system all of us need to see,” he added.
“Power safety is nationwide safety. In an more and more unstable world the widening hole between the vitality we produce and what we import issues. Safe homegrown oil and fuel alongside renewables pays taxes, helps jobs and safeguards the provision chains we have to construct our vitality future,” he continued.
Rigzone has contacted the Local weather Change Committee, the UK Division for Power Safety and Web Zero (DESNZ), and HM Treasury for touch upon OEUK’s launch and report. On the time of writing, not one of the above have responded to Rigzone.
OEUK describes itself because the main commerce physique for the UK’s offshore energies business. Its membership consists of over 400 organizations with an curiosity in offshore oil, fuel, carbon seize and storage, hydrogen, and offshore wind, OEUK’s launch highlighted.
To contact the creator, e mail andreas.exarheas@rigzone.com
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