The OGA Strategy
The revised Oil and Gas Authority (OGA) Strategy places an obligation on the oil and gas industry to assist the Secretary of State in meeting the net zero carbon by 2050 target. This amends the MER UK Strategy which came into force on 18 March 2016
The main changes to the Strategy are:
- Including net zero as part of Maximising Economic Recovery (MER) in the Central Obligation and embedding this change throughout the Strategy in relevant Supporting Obligations and economic definitions
- Reinforcing behaviours that enable effective supply chain collaboration
- Including a new corporate governance Supporting Obligation
- Including a new carbon storage Supporting Obligation
- Moving the Collaboration ‘Required Actions’ to the ‘Supporting Obligations’
- Clarifying how we will include carbon costs in economic calculations
The OGA has also made several other changes to reflect stewardship and other changes in the basin’s operating environment over the past four years.
Maximising economic recovery of oil and gas need not be in conflict with the transition to net zero, and the oil and gas industry has the skills, technology and capital to help unlock solutions required to help the UK achieve the net zero target.
However, the OGA takes the view that industry should go considerably faster and farther in reducing its own carbon footprint, or risk losing its social licence to operate. The revised OGA Strategy positions the UK Continental Shelf as a key enabler for the transition towards net zero carbon.
The Strategy was submitted for laying in the UK parliament on 16 December 2020 and will come into force post laying subject to Parliamentary process .