Businesses working in the East of England gas industry were told there were at least another 20 years’ production left in the Southern North Sea by a government expert at Westminster.
Production is expected to continue until at least 2035, despite the current downturn, a House of Commons’ reception for 200 members of the East of England energy industry were told, offering a beacon of hope during difficult times.
The SNS could continue to meet 20% of the UK’s energy needs for the another two decades, the Oil & Gas Authority (OGA) SNS area manager Eric Marston said.
Supply chain companies from the East of England should “hold on to that thought,” he told the event, with energy minister Baroness Neville-Rolfe, organized by the East of England Energy Group (EEEGR) with Great Yarmouth MP Brandon Lewis.
The delegation was designed to reinforce EEEGR’s messages about the region’s vital role in keeping the UK lit and warm and its importance to the national economy at the heart of government.
More than 3.7 Tcf of gas was still to be produced from the SNS from existing developments and a further 5 Tcf of gas from the further development of existing reservoirs but also undeveloped discoveries, Marston said.
He called on supply chain companies and operators to sign up to a new SNS Rejuvenation Special Interest Group (SIG) organized by the OGA and EEEGR to work for solutions to unlock the remaining potential of the SNS.
“The SNS continues to be a key contributor to the UK’s energy needs. I would expect production to keep going for at least another 20 years, at least until 2035. However it isn’t that simple. A significant portion of these opportunities are not easy to access.
“Much of what is left in the SNS are small pool and tight gas opportunities. These resources are increasingly expensive, commercially risky and complex to develop. We need to work on how to harness that potential including both innovative technical and commercial solutions.”
Synergies between the gas industry and the growing offshore wind industry would also be explored including how they could work more effectively and efficiently together.
“Both industries share the same parts of the SNS and need the same skills to get the work done and similar means of getting people to and from their offshore facilities. If your organization can make a difference to the UK’s indigenous gas supply and can make a contribution, I would ask you to step forward.”
Baroness Neville-Rolfe praised the work of the “brilliant region” to a packed Members’ Dining Room, representing small supply chain companies, major North Sea operators, wind farm developers and industry organizations, including Deirdre Michie, CEO of Oil & Gas UK and Peter Aldous, Waveney MP. “Nowhere in the UK is there such an energy mix as the East of England.”
Energy formed a major part of the national economy, she said. “The Government very much recognizes the value of the UK Continental Shelf gas production and in ensuring UK energy and safeguarding jobs and economic interests.
“Despite the SNS being mature basin, there remains potential. The OGA is currently exploring the potential of the East of England to be an energy hub.”
The government’s “trilemma” was the need to supply energy, the need for that energy to be affordable and hit low carbon targets while meeting its industrial strategy.
She would soon make an announcement on future Contracts for Difference auctions for new offshore wind farms, she said.
The government wanted to see a competitive UK-based supply chain for the “trail-blazing program” ready to export.
Great Yarmouth MP Brandon Lewis said the packed room was “testament to the industry and the great work EEEGR does.
“It is good to be able to make our message clear that we have a fantastic offer - and the whole energy offer, nuclear, oil and gas and renewables. We can more than play a part and punch above our weight to take advantage of all of the opportunities that lie ahead.”
EEEGR CEO Simon Gray said EEEGR’s messages to government were seeking its support for continued exploration and production in the SNS to safeguard jobs in the supply chain, to reaffirm its commitment for three future rounds of Contracts for Difference auctions for offshore wind to ensure the on-going pipelines of work and to continue to support EDF in bringing forward more details on Sizewell C and Bradwell B supporting new nuclear building for the UK.
Paul Spence, director of strategy and corporate affairs at EDF, said EDF wanted to bring the same opportunities to Sizewell C as it was to Hinkley Point - 25,000 job opportunities, 1000 apprentices and the value of the 64% of the construction spend means for the UK supply chain.
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