UK offshore oil and gas regulator the Oil and Gas Authority on Monday announced the name change to the North Sea Transition Authority (NSTA) "to reflect its evolving role in the energy transition."
"In 2021, the OGA revised our strategy to put net-zero at the heart of our work alongside the important role of stewarding production. In March last year, the North Sea Transition Deal between government and industry set out an ambitious program for this path and the crucial role that the UK’s oil and gas industry should play.
The new name embraces this new context and our expanding role in energy transition, including as the carbon storage licence and permitting authority, monitoring of emissions, assessing a net zero test for new developments, and stewarding domestic production," the NSTA said.
"The role of oil and gas will reduce over the coming years, but they currently provide about 75% the UK’s energy needs and will remain an essential part of the energy mix for some time to come," the regulator said.
However, the NSTA stressed, the government has signaled its intention to reach net-zero greenhouse gas emissions by 2050 (2045 in Scotland) and the North Sea has a vital part to play in reaching that goal.
"At the same time, ongoing global and geopolitical events have made it clearer than ever that security of supply remains important as the transition is achieved. The NSTA will continue to play a vital role in ensuring energy security as the body that stewards the oil and gas industry, both on and offshore, with energy transition issues already playing a significant and increasing role in the organization’s day-to-day activities," the NSTA said.
NSTA also listed its specific workstreams, which include:
Stewarding ongoing production from oil and gas fields
Licensing and stewarding new oil and gas developments from licensing to production
Monitoring industry greenhouse gas emissions in line with the North Sea Transition Deal
Encouraging platform electrification projects in the Central North Sea and West of Shetland
As the licensing authority for carbon storage, stewarding projects through development and supporting the government’s CCS deployment pathway
Providing a huge quantity of data required to assist in finding suitable locations for oil and gas exploration as well as carbon storage and other projects
Working with industry to support improved environmental, social and governance reporting
Leading studies to assess the potential for hydrogen power and carbon storage in hubs such as Bacton
Driving offshore energy integration to build closer links between oil and gas and renewables and reduce carbon emissions from oil and gas production
Dr Andy Samuel, North Sea Transition Authority Chief Executive, said: “The UK is moving to a net zero, low carbon future and the Russian government’s invasion of Ukraine reinforces the need for pace. Meanwhile oil and gas remain vital for energy security as we transition. The NSTA is ideally placed to support both. Our values remain the same while the organisation is adapting to meet the UK’s changing needs. We will continue our strong focus on value creation for government, the public and industry.”
Energy and Climate Change Minister, Greg Hands, said:"This new name reflects the importance of our landmark Deal agreed by this government, which is protecting our energy security, supporting high-value jobs, and safeguarding the expertise necessary to achieve a lower carbon future.
“We are determined to generate more clean, cheap energy in the UK to reduce our exposure to volatile global gas markets, while continuing to back North Sea oil and gas for security of supply."
Rebranding is 'exactly right'
Sir Ian Wood, Chairman of ETZ Ltd, said: "I am very proud that the Maximising Economic Recovery Project in 2013/14 led to the formation of the highly successful Oil & Gas Authority which, under Andy Samuel, has undoubtedly achieved significant and effective collaboration within the industry and is now looking more and more towards energy transition.
"The rebranding is exactly right and will enable the North Sea Transition Authority to ensure oil and gas makes a significant contribution to the development of the new energies particularly as we focus on reducing carbon emissions as part of the wider efforts to meet net-zero targets. This will undoubtedly help both industry and government capitalize on the massive opportunities that energy transition provides.”
Simon Roddy SVP Shell UK, Upstream, said: "The North Sea is the UK’s greatest energy asset. Those who came before us unlocked the oil and gas resources which have been the backbone of the UK’s energy system for decades.
"The North Sea will remain at the heart of the UK’s energy system as we transition. The new name for the regulator rightly reflects the changing role of our industry and we look forward to continued collaboration as we deliver on our common goal of the North Sea Transition Deal.”