Oil and gas industry in the United Kingdom
Encyclopedia
This article sets out the role of the UK oil and gas industry in the economy, energy supply
and technology. It also covers the industry’s safety and environmental record and its prospects for the future.
(UKCS).
s that are likely to contain oil or gas.
services to the industry. It runs the Well DataStore, an online collection of members’ well data, and the DEAL website, which allows public access to data and information about the industry’s exploration and production activities on the UKCS. In 2009, CDA launched the Seismic DataStore, an online receptacle for seismic data collected since the 1960s.
s, 181 gas platforms and a large number of subsea installations. There are 383 producing fields, including 17 new ones which started production in 2008.
peaked in 1999, but the UK remains a substantial producer today. Over the last four decades, 39 billion boe have been extracted on the UKCS. In 2008, the combined production of oil and gas was 1 billion boe (549 Moilbbl of oil and 68 billion cubic metre
s of gas). This represented a fall of 5% compared with 2007 (6% oil and 3% gas), a slight improvement on the decline rate in 2002-2007 which averaged 7.5% per annum.
demand is met by oil and gas. In 2008, oil produced on the UKCS satisfied almost all domestic consumption (97%) while gas produced in the UK met about three quarters of demand. In 2020, it is estimated that 70% of primary energy consumed in the UK will still come from oil and gas, even upon achievement of the Government’s target to source 15% of energy from renewable sources. This will be a combination of oil and gas produced domestically and imports. The UKCS has the potential to satisfy 40% of the UK’s oil and gas demand in 2020, if investment is sustained.
s over the last forty years. In 2008, tax rates on UKCS production ranged from 50 – 75% , depending on the field. The industry paid £12.9 billion in corporate taxes in 2008-9, the largest since the mid-1980s, because of high oil and gas prices
. This represented 28% of total corporation tax paid in the UK. It is expected that tax revenues from production will fall to £6.9 billion in 2009-10 based on an oil price of $47 per barrel, providing 20% of total corporation taxes. In addition to production taxes, the supply chain
contributes another £5-6 billion per year in corporation and payroll taxes.
in goods and services
was in deficit by £44 billion. If the UK did not produce oil and gas, its dependency on imported fuel would have been higher and the balance of trade deficit would have nearly doubled to £84 billion.
were supported by the servicing of activity on the UKCS and in the export of oil and gas related goods and services around the world. The exploration for and extraction of oil and gas from the UKCS accounted for around 350,000 of these; this comprised 34,000 directly employed by oil and gas companies and their major contractors, plus 230,000 within the wider supply chain. Another 89,000 jobs were supported by the economic activity induced by employees’ spending. In addition, a thriving exports business is estimated to support a further 100,000 jobs.
, 15% from the North of England
, and 12% from the East of England
. Each £billion spent on the UKCS supports approximately 20,000 jobs.
on training delivery both here and around the world are also being advanced through the Academy.
OPITO also governs the standards to which the offshore training providers deliver courses to, an example of this is the 3 day Basic Offshore Safety Induction and Emergency Training (more commonly known as the BOSIET). Within Europe's oil and gas capital, Aberdeen, there are a number of training providers, with Falck Nutec being one of the most well-known and respected firms in this arena.
in the waters around the UK is harsh and demanding. To overcome the challenges of recovering oil and gas from increasingly difficult reservoirs and deeper waters, the North Sea has developed a position at the forefront of offshore engineering, particularly in subsea technology. Many new oil and gas fields in the UK are small, technically complex and economically marginal. Often recovery from these fields is achieved by subsea developments tied back to existing installations and infrastructure, over varying distances measured in tens of kilometres. Innovative technology is also a critical component in the recovery of reserves from high pressure, high temperature (HPHT), heavy oil
and deep water fields.
(HSE) is the UK offshore oil and gas industry regulator and is organised into a number of directorates. The Hazardous Installations Directorate (HID) is the operational arm responsible for major hazards. A dedicated Offshore Division within HID is responsible for the enforcement of regulations in the offshore oil and gas industry.
(Investigation of Air Accidents involving Civil and Military Aircraft
or Installations) Regulations 1986; The Civil Aviation
(Investigation of Air Accidents) Regulations 1989; and The Merchant Shipping Act 1988, and Orders and Regulations made or to be made there under – therefore, industry-related aviation and marine accidents which are covered by any of the above regulations are not included in the RIDDOR-derived statistics. In 2007/8 and 2008/9, there were no fatalities, compared with two in 2006/7 and 2005/6. During 2008/9, 30 major injuries were reported compared with 44 in 2007/8. This resulted in a combined fatal and major injury rate of 106 per 100,000 workers, down from 156 and 146 in 2007/8 and 2006/7 respectively. The number of over-3-day injuries has fallen this year by 5% to 140, representing an over-3-day injury rate of 496 per 100,000 workers.
(based on payments from oil and gas producers) which can be used to maintain comprehensive, up-to-date information on all seabed hazards related to oil and gas activities for as long as they remain, and to make this data available for use by fishing vessel plotters found on-board in wheelhouses all around the UK coastline.
process is to understand and manage environmental risks to achieve demonstrable no harm levels by 2020.
Emissions Trading
Scheme (EU ETS
) which aims to reduce emissions of carbon dioxide
and combat the threat of climate change
. Carbon dioxide is released into the atmosphere in three ways during production operations: combustion of fuel for power generation
, flaring (a process used to burn off unusable waste gas or flammable gas and liquids for safety reasons) and direct process emissions. Over the years, carbon dioxide emissions in tonnes have steadily decreased with a 10% reduction in 2007 compared with 2000. In 2007, 17 million tonnes of carbon dioxide were emitted.
) or in the course of normal operations. In 2007, 59 tonnes of oil in total was accidentally released into the marine environment, which, in open sea, will have a negligible environmental impact.
and powder, recovered oil, crude contaminated material, chemicals, drums, containers, sludges, tank washings, scrap metal
and segregated recyclables. The majority of wastes produced offshore are transferred onshore where the main routes of disposal are landfill, incineration, recycling and reuse. Drill cuttings are also re-injected into wells offshore.
issues. Expenditure is therefore projected to be £19 billion by 2030, rising to £23 billion by 2040, for existing facilities. New facilities could add another £2-3 billion to the decommissioning cost, raising the total to circa £25 billion.
The export of oilfield goods and services developed by the UK over forty years are in demand around the world. In 2008, approximately £5 billion was earned through such exports. As energy demand
around the world grows, so too will the need for technology and expertise required to satisfy it.
Transfer to other industries
Marine technology, skills and expertise pioneered in oil and gas are important in the design, installation and maintenance of offshore wind turbine
s and hence have found roles in the continuing evolution of renewable energy
. The industry has led the way in the development of drilling, remotely operated vehicles (ROVs) and geophysical technology. All three areas of expertise are used by scientists and engineers elsewhere, whether examining Antarctic ice core
samples, raising sunken ship wrecks or studying the plate tectonics
of the ocean floor
.
Carbon Capture and Storage (CCS)
To prevent carbon dioxide building up in the atmosphere it can be captured and stored. CCS combines three distinct processes: capturing the carbon dioxide at a power station
or other major industrial plant
, transporting it by pipeline or by tanker, and then storing it in geological formations. Some of the best natural repositories are depleted oil and gas fields, such as those in the North Sea. The oil and gas industry’s knowledge of undersea geology, reservoir management and pipeline transport
will play an important role in making this technology work effectively.
Energy supply
Energy supply is the delivery of fuels or transformed fuels to point of consumption. It potentially encompasses the extraction, transmission, generation, distribution and storage of fuels...
and technology. It also covers the industry’s safety and environmental record and its prospects for the future.
Location
99% of UK oil and gas production occurs under the seas surrounding the UK, from the seabed known as the UK continental shelfContinental shelf
The continental shelf is the extended perimeter of each continent and associated coastal plain. Much of the shelf was exposed during glacial periods, but is now submerged under relatively shallow seas and gulfs, and was similarly submerged during other interglacial periods. The continental margin,...
(UKCS).
Seismic surveying
Before an exploration well is drilled, vessels scan the seabed collecting seismic data, which indicates the location of rock formationRock formation
This is a list of rock formations that include isolated, scenic, or spectacular surface rock outcrops. These formations are usually the result of weathering and erosion sculpting the existing rock...
s that are likely to contain oil or gas.
Drilling
Since 1965, 3,970 exploration and appraisal wells have been drilled on the UKCS. In 2008, 109 wells were drilled; in the first six months of 2009, exploration and appraisal fell by 52% compared with the same period in 2008.Discoveries
In 2008, 300 Moilbbl of oil and gas equivalent (boe) were discovered. The average size of the oil and gas fields discovered between 2000 and 2008 was 26 million boe, compared with an average of 248 million boe in the ten years from 1966.Associated expenditure
Over four decades since the 1960s, the industry has spent £58 billion (2008 money) on exploration drilling. In 2008, £1.4 billion was spent finding new oil and gas reserves.Seismic and well data
Since 1995, Common Data Access Ltd (CDA) has provided data managementData management
Data management comprises all the disciplines related to managing data as a valuable resource.- Overview :The official definition provided by DAMA International, the professional organization for those in the data management profession, is: "Data Resource Management is the development and execution...
services to the industry. It runs the Well DataStore, an online collection of members’ well data, and the DEAL website, which allows public access to data and information about the industry’s exploration and production activities on the UKCS. In 2009, CDA launched the Seismic DataStore, an online receptacle for seismic data collected since the 1960s.
Infrastructure
Almost all of the UK’s oil and gas production comes from offshore, where there is a network of 14,000 km of pipelines linking 107 oil platformOil platform
An oil platform, also referred to as an offshore platform or, somewhat incorrectly, oil rig, is a lаrge structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing...
s, 181 gas platforms and a large number of subsea installations. There are 383 producing fields, including 17 new ones which started production in 2008.
Production ranking
In 2008, the UK was the 14th largest oil and gas producer in the world (10th largest gas producer and 19th largest oil producer). In EU terms, the UK is the largest producer of both oil and gas and, within Europe as a whole, is second only to Norway in each case.Production level
Oil and gas production from the UK sector of the North SeaNorth Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
peaked in 1999, but the UK remains a substantial producer today. Over the last four decades, 39 billion boe have been extracted on the UKCS. In 2008, the combined production of oil and gas was 1 billion boe (549 Moilbbl of oil and 68 billion cubic metre
Cubic metre
The cubic metre is the SI derived unit of volume. It is the volume of a cube with edges one metre in length. An alternative name, which allowed a different usage with metric prefixes, was the stère...
s of gas). This represented a fall of 5% compared with 2007 (6% oil and 3% gas), a slight improvement on the decline rate in 2002-2007 which averaged 7.5% per annum.
Role in supplying energy to the UK
Just over three quarters of the UK’s current primary energyPrimary energy
Primary energy is an energy form found in nature that has not been subjected to any conversion or transformation process. It is energy contained in raw fuels, and other forms of energy received as input to a system...
demand is met by oil and gas. In 2008, oil produced on the UKCS satisfied almost all domestic consumption (97%) while gas produced in the UK met about three quarters of demand. In 2020, it is estimated that 70% of primary energy consumed in the UK will still come from oil and gas, even upon achievement of the Government’s target to source 15% of energy from renewable sources. This will be a combination of oil and gas produced domestically and imports. The UKCS has the potential to satisfy 40% of the UK’s oil and gas demand in 2020, if investment is sustained.
Associated expenditure
Over the last four decades, a total of £210 billion (2008 money) has been invested in developing new resources. In 2008, this figure was £4.8 billion, a 20% decrease since 2006. An additional £147 billion (2008 money) has been spent on producing the oil and gas and in 2008, operating costs were £6.8 billion, an increase on 2007.Tax contribution
Oil and gas production from the UKCS has contributed £271 billion (2008 money) in tax revenueTax revenue
Tax revenue is the income that is gained by governments through taxation.Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be an alternative third-party...
s over the last forty years. In 2008, tax rates on UKCS production ranged from 50 – 75% , depending on the field. The industry paid £12.9 billion in corporate taxes in 2008-9, the largest since the mid-1980s, because of high oil and gas prices
Price of petroleum
The price of petroleum as quoted in news generally refers to the spot price per barrel of either WTI/light crude as traded on the New York Mercantile Exchange for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange for delivery at Sullom Voe.The price...
. This represented 28% of total corporation tax paid in the UK. It is expected that tax revenues from production will fall to £6.9 billion in 2009-10 based on an oil price of $47 per barrel, providing 20% of total corporation taxes. In addition to production taxes, the supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
contributes another £5-6 billion per year in corporation and payroll taxes.
Support to UK balance of trade
In 2008, the UK’s balance of tradeBalance of trade
The balance of trade is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation's imports and exports...
in goods and services
Goods and services
In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....
was in deficit by £44 billion. If the UK did not produce oil and gas, its dependency on imported fuel would have been higher and the balance of trade deficit would have nearly doubled to £84 billion.
Number of jobs
In 2008, some 450,000 jobs throughout the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
were supported by the servicing of activity on the UKCS and in the export of oil and gas related goods and services around the world. The exploration for and extraction of oil and gas from the UKCS accounted for around 350,000 of these; this comprised 34,000 directly employed by oil and gas companies and their major contractors, plus 230,000 within the wider supply chain. Another 89,000 jobs were supported by the economic activity induced by employees’ spending. In addition, a thriving exports business is estimated to support a further 100,000 jobs.
Regional distribution
Whilst the oil and gas industry provides work across the whole of the UK, Scotland benefits the most, with around 195,000 jobs, or 44% of the total. 21% of the workforce is from South East EnglandSouth East England
South East England is one of the nine official regions of England, designated in 1994 and adopted for statistical purposes in 1999. It consists of Berkshire, Buckinghamshire, East Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, Surrey and West Sussex...
, 15% from the North of England
Northern England
Northern England, also known as the North of England, the North or the North Country, is a cultural region of England. It is not an official government region, but rather an informal amalgamation of counties. The southern extent of the region is roughly the River Trent, while the North is bordered...
, and 12% from the East of England
East of England
The East of England is one of the nine official regions of England. It was created in 1994 and was adopted for statistics from 1999. It includes the ceremonial counties of Essex, Hertfordshire, Bedfordshire, Cambridgeshire, Norfolk and Suffolk. Essex has the highest population in the region.Its...
. Each £billion spent on the UKCS supports approximately 20,000 jobs.
Companies database
Set up in 1996, First Point Assessment Limited (FPAL) is the key tool used by oil and gas companies to identify and select current and potential suppliers when awarding contracts or purchase orders. The organisation operates as a neutral, industry-steered organisation, improving efficiency in the oil and gas supply chain. FPAL currently matches the needs of over 70 purchasing organisations with the capabilities of over 2,400 suppliers.Tax contribution
Jobs in the UK oil and gas industry are highly skilled and well rewarded. 2008 salaries averaged circa £50,000 a year across a broad sample of supply chain companies, with the Exchequer benefiting by £19,500 per head in payroll taxes.Skills and training
Set up in 2007, OPITO - The Oil & Gas Academy supports the efforts and resources that employers throughout the UK are currently investing in workforce development to ensure that the UKCS remains at the forefront of offshore expertise and technology. The organisation allows the industry to consolidate and improve its work in generating and developing the talent needed to sustain the long-term future of the UKCS and export learning internationally. The Academy works with schools, colleges and universities on a shared agenda of encouraging greater uptake of mathematics, science and engineering subjects. The organisation also supports the development of safety, technical and leadership skills within the industry in response to identified need. Training standards and quality assuranceQuality Assurance
Quality assurance, or QA for short, is the systematic monitoring and evaluation of the various aspects of a project, service or facility to maximize the probability that minimum standards of quality are being attained by the production process...
on training delivery both here and around the world are also being advanced through the Academy.
OPITO also governs the standards to which the offshore training providers deliver courses to, an example of this is the 3 day Basic Offshore Safety Induction and Emergency Training (more commonly known as the BOSIET). Within Europe's oil and gas capital, Aberdeen, there are a number of training providers, with Falck Nutec being one of the most well-known and respected firms in this arena.
UKCS technology
The operating environmentOperating environment
The operating environment in engineering describes the circumstances surrounding and potentially affecting something that is operating. For example electronic or mechanical equipment may be affected by high temperatures, vibration, dust, and other parameters which comprise the operating...
in the waters around the UK is harsh and demanding. To overcome the challenges of recovering oil and gas from increasingly difficult reservoirs and deeper waters, the North Sea has developed a position at the forefront of offshore engineering, particularly in subsea technology. Many new oil and gas fields in the UK are small, technically complex and economically marginal. Often recovery from these fields is achieved by subsea developments tied back to existing installations and infrastructure, over varying distances measured in tens of kilometres. Innovative technology is also a critical component in the recovery of reserves from high pressure, high temperature (HPHT), heavy oil
Heavy oil
Heavy oil may refer to:*Fuel oil that contains residual oil left over from distillation.*Heavy crude oil, viscous crude oil.*Coal tar creosote, a wood preservative and waterproofing agent....
and deep water fields.
Exports
UK exports of oil-related goods and services have been estimated at more than £5 billion a year in value. This amount is a reflection of how well established the UK’s supply chain is internationally. The competence of its people and the quality of its technology, particularly subsea, are very much in demand in oil and gas provinces around the world.Industry collaboration
The Industry’s Technology Facilitator (ITF) identifies needs and facilitates the development of new technology to meet those needs through joint industry projects with up to 100% funding available for promising solutions. Since its creation ten years ago, ITF has helped oil and gas producers, service companies and technology developers to work collaboratively, developing 137 technology projects.Safety vision
Set up 1997, Step Change in Safety is the UK based cross-industry partnership with the remit to make the UK the safest oil and gas exploration and production province in the world. Its initial aim was to reduce the injury rate by 50%, which was achieved in 2003. Step Change in Safety’s work is now focused in three areas: recognising hazards and reducing risk, personal ownership for safety and asset integrity. Communication between Step Change in Safety and the industry is through elected safety representatives, offshore installation managers and supervisors, safety professionals and company focal points. These individuals are consulted on what needs to be done and are charged with ensuring that the Step Change programme is implemented.Regulator
The Health & Safety ExecutiveHealth and Safety Executive
The Health and Safety Executive is a non-departmental public body in the United Kingdom. It is the body responsible for the encouragement, regulation and enforcement of workplace health, safety and welfare, and for research into occupational risks in England and Wales and Scotland...
(HSE) is the UK offshore oil and gas industry regulator and is organised into a number of directorates. The Hazardous Installations Directorate (HID) is the operational arm responsible for major hazards. A dedicated Offshore Division within HID is responsible for the enforcement of regulations in the offshore oil and gas industry.
Statistics
HSE publishes fatal, major and over-3-day injuries as well as dangerous occurrences under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 1996 . RIDDOR does not apply to events that are reportable under the Air NavigationAir navigation
The basic principles of air navigation are identical to general navigation, which includes the process of planning, recording, and controlling the movement of a craft from one place to another....
(Investigation of Air Accidents involving Civil and Military Aircraft
Military aircraft
A military aircraft is any fixed-wing or rotary-wing aircraft that is operated by a legal or insurrectionary armed service of any type. Military aircraft can be either combat or non-combat:...
or Installations) Regulations 1986; The Civil Aviation
Civil aviation
Civil aviation is one of two major categories of flying, representing all non-military aviation, both private and commercial. Most of the countries in the world are members of the International Civil Aviation Organization and work together to establish common standards and recommended practices...
(Investigation of Air Accidents) Regulations 1989; and The Merchant Shipping Act 1988, and Orders and Regulations made or to be made there under – therefore, industry-related aviation and marine accidents which are covered by any of the above regulations are not included in the RIDDOR-derived statistics. In 2007/8 and 2008/9, there were no fatalities, compared with two in 2006/7 and 2005/6. During 2008/9, 30 major injuries were reported compared with 44 in 2007/8. This resulted in a combined fatal and major injury rate of 106 per 100,000 workers, down from 156 and 146 in 2007/8 and 2006/7 respectively. The number of over-3-day injuries has fallen this year by 5% to 140, representing an over-3-day injury rate of 496 per 100,000 workers.
Asset integrity
Asset integrity is the ability of an oil and gas asset to perform its required function effectively and efficiently whilst protecting health, safety and the environment. Asset integrity management is the means of ensuring that the people, systems, processes and resources that deliver integrity are in place, in use and will perform when required over the whole lifecycle of the asset. In 2004, the HSE highlighted the infrastructure on which work was required to maintain integrity and £4 billion was subsequently spent in the area of asset maintenance. In 2009, the HSE confirmed that the key issues identified earlier had been resolved. Specific initiatives now encourage industry wide engagement and continued investment in asset integrity.Aviation safety
Aberdeen is the busiest heliport in the UK with 47,000 flights in 2008 transporting workers to and from offshore installations on the UKCS. Between 1977 and the end of 2006, just over 56 million passengers were transported by helicopter from all UK heliports to and from offshore installations on the UKCS. More than 6.5 million sectors were flown, taking nearly 3 million flying hours. During this time, seven fatal helicopter accidents claimed the lives of 94 offshore workers and flight crew. Government data for the period 1995 to 2004 show that with the exception of rail, the yearly passenger casualty rate for offshore helicopter travel is much better than most forms of land-based passenger transport and of a similar order to travelling by car. Offshore helicopter passengers are equipped for their journey with survival suits and other aids and undergo survival training.Other mariners’ safety
The Fisheries Legacy Trust Company’s (FLTC) main function is to help keep fishermen safe in UK waters. It does this by building a trust fundTrust law
In common law legal systems, a trust is a relationship whereby property is held by one party for the benefit of another...
(based on payments from oil and gas producers) which can be used to maintain comprehensive, up-to-date information on all seabed hazards related to oil and gas activities for as long as they remain, and to make this data available for use by fishing vessel plotters found on-board in wheelhouses all around the UK coastline.
Environmental vision
The industry’s vision which guides the environmental managementEnvironmental management
Environmental resource management is “a purposeful activity with the goal to maintain and improve the state of an environmental resource affected by human activities” . It is not, as the phrase suggests, the management of the environment as such, but rather the management of the interaction and...
process is to understand and manage environmental risks to achieve demonstrable no harm levels by 2020.
Atmospheric emissions
UK oil and gas installations participate in the European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
Emissions Trading
Emissions trading
Emissions trading is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants....
Scheme (EU ETS
European Union Emission Trading Scheme
The European Union Emissions Trading Scheme also known as the European Union Emissions Trading System, was the first large emissions trading scheme in the world. It was launched in 2005 to combat climate change and is a major pillar of EU climate policy...
) which aims to reduce emissions of carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
and combat the threat of climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
. Carbon dioxide is released into the atmosphere in three ways during production operations: combustion of fuel for power generation
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
, flaring (a process used to burn off unusable waste gas or flammable gas and liquids for safety reasons) and direct process emissions. Over the years, carbon dioxide emissions in tonnes have steadily decreased with a 10% reduction in 2007 compared with 2000. In 2007, 17 million tonnes of carbon dioxide were emitted.
Marine discharges
Discharges into the sea can occur either through accidental release (eg. oil spillOil spill
An oil spill is the release of a liquid petroleum hydrocarbon into the environment, especially marine areas, due to human activity, and is a form of pollution. The term is mostly used to describe marine oil spills, where oil is released into the ocean or coastal waters...
) or in the course of normal operations. In 2007, 59 tonnes of oil in total was accidentally released into the marine environment, which, in open sea, will have a negligible environmental impact.
Waste
Types of waste generated offshore vary and include drill cuttingsDrill cuttings
Drill cuttings are the broken bits of solid material removed from a borehole drilled by rotary, percussion, or auger methods. Boreholes drilled in this way include oil or gas wells, water wells, and holes drilled for geotechnical investigations or mineral exploration.The drill cuttings are commonly...
and powder, recovered oil, crude contaminated material, chemicals, drums, containers, sludges, tank washings, scrap metal
Scrap
Scrap is a term used to describe recyclable and other materials left over from every manner of product consumption, such as parts of vehicles, building supplies, and surplus materials. Unlike waste, scrap has significant monetary value...
and segregated recyclables. The majority of wastes produced offshore are transferred onshore where the main routes of disposal are landfill, incineration, recycling and reuse. Drill cuttings are also re-injected into wells offshore.
Production
39 Goilbbl of oil and gas have been produced on the UKCS and up to 25 Goilbbl are left. Therefore the UK could still be producing significant amounts of oil and gas for decades to come. It is estimated that in 2020, UK production could still meet 40% of the nation’s demand for oil and gas.Decommissioning
The principal legislation for decommissioning offshore infrastructure when production ceases is OSPAR Decision 98/3 on Disposal of Disused Offshore Installations. Under OSPAR legislation, only installations that fulfil certain criteria (on the grounds of safety and/or technical limitations) are eligible for derogation (that is, leaving the structure, or part of, in place on the seabed). All other installations must be totally removed from the seabed. During the next two decades, the industry will begin to decommission many of the installations that have been producing oil and gas for the past forty years. There are approximately 470 installations to be decommissioned, including very large ones with concrete sub-structures, small, large and very large steel platforms, and subsea and floating equipment, the vast majority of which will have to be totally removed to the shore for dismantling and disposal. Some 10,000 kilometres of pipelines, 15 onshore terminals and around 5,000 wells are also part of the infrastructure planned to be gradually phased out, although some, or parts, of the onshore terminals will remain because they are import points for gas pipelines from Norway and the Netherlands. Decommissioning is a complex process, representing a considerable challenge on many fronts and encompassing technical, economic, environmental, health and safetyOccupational safety and health
Occupational safety and health is a cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all occupational safety and health programs is to foster a safe work environment...
issues. Expenditure is therefore projected to be £19 billion by 2030, rising to £23 billion by 2040, for existing facilities. New facilities could add another £2-3 billion to the decommissioning cost, raising the total to circa £25 billion.
Technology
ExportsThe export of oilfield goods and services developed by the UK over forty years are in demand around the world. In 2008, approximately £5 billion was earned through such exports. As energy demand
World energy resources and consumption
]World energy consumption in 2010: over 5% growthEnergy markets have combined crisis recovery and strong industry dynamism. Energy consumption in the G20 soared by more than 5% in 2010, after the slight decrease of 2009. This strong increase is the result of two converging trends...
around the world grows, so too will the need for technology and expertise required to satisfy it.
Transfer to other industries
Marine technology, skills and expertise pioneered in oil and gas are important in the design, installation and maintenance of offshore wind turbine
Wind turbine
A wind turbine is a device that converts kinetic energy from the wind into mechanical energy. If the mechanical energy is used to produce electricity, the device may be called a wind generator or wind charger. If the mechanical energy is used to drive machinery, such as for grinding grain or...
s and hence have found roles in the continuing evolution of renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
. The industry has led the way in the development of drilling, remotely operated vehicles (ROVs) and geophysical technology. All three areas of expertise are used by scientists and engineers elsewhere, whether examining Antarctic ice core
Ice core
An ice core is a core sample that is typically removed from an ice sheet, most commonly from the polar ice caps of Antarctica, Greenland or from high mountain glaciers elsewhere. As the ice forms from the incremental build up of annual layers of snow, lower layers are older than upper, and an ice...
samples, raising sunken ship wrecks or studying the plate tectonics
Plate tectonics
Plate tectonics is a scientific theory that describes the large scale motions of Earth's lithosphere...
of the ocean floor
Seabed
The seabed is the bottom of the ocean.- Ocean structure :Most of the oceans have a common structure, created by common physical phenomena, mainly from tectonic movement, and sediment from various sources...
.
Carbon Capture and Storage (CCS)
To prevent carbon dioxide building up in the atmosphere it can be captured and stored. CCS combines three distinct processes: capturing the carbon dioxide at a power station
Power station
A power station is an industrial facility for the generation of electric energy....
or other major industrial plant
Industrial process
Industrial processes are procedures involving chemical or mechanical steps to aid in the manufacture of an item or items, usually carried out on a very large scale. Industrial processes are the key components of heavy industry....
, transporting it by pipeline or by tanker, and then storing it in geological formations. Some of the best natural repositories are depleted oil and gas fields, such as those in the North Sea. The oil and gas industry’s knowledge of undersea geology, reservoir management and pipeline transport
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
will play an important role in making this technology work effectively.