Investment into North Sea oil and gas will reach record levels in 2013, with £13.5 billion pumped into an industry whose production has dropped off significantly in the last decade.
Trade body Oil & Gas UK’s Economic Report for 2013 says production dropped 19.2% between 2010 and 2011, and 14.5% between 2011 and 2012.
In 2003, just less than 4m barrels of oil equivalent (boe) were produced every day. By 2012, this figure had halved. If the rate of decline continues, Oil & Gas UK expects a further 8.5% drop in 2013.
However, speaking to BBC Radio 4’s Today programme on Wednesday, chief executive Malcolm Webb described the findings of its report as “good news”.
“This capital investment is going to pass through eventually; it’s going to have its effect and we will see an increase in production”, he said.
“But right now, we’re suffering from a sort of legacy of the wrong conditions in the North Sea and we are seeing a continuing decline. That’s going to turn and this investment is going to have its impact.”
The economic analysis of the UK’s oil and gas industry comes just four months after the release of the thinktank Carbon Tracker’s Unburnable Carbon study, which said that some 60-80% of known fossil fuel reserves need to be left in the ground if the world wants to avoid runaway climate change. This financially-motivated argument has led many major investors, including Norwegian pension fund Storebrand, to turn their backs on the fossil fuel industry.
A spokesperson for Oil & Gas UK said it “would need to read the report in detail and have time to digest what it has say before commenting on what it says”. However, it added, “Oil and gas will continue to play a role in sustaining our economy and lifestyles – according to the UK government, still providing 70% of our primary energy needs in 2030 – as we move to the alternative energy forms which future generations will need.”
Asked about the report’s failure to mention climate change more than once, the spokesperson said, “The focus of the Economic Report is on the current economics of the industry and Oil & Gas UK is producing an environmental report in autumn 2013.”
They added, “The fastest, least risky (technically and financially) and cheapest way for the UK to reduce emissions substantially in the next 10-15 years is to build gas-fired power stations to replace the old coal and oil fired ones which will have to be retired during this period.
“If all of the electricity generated by coal and oil in 2012 were replaced by gas generation, CO2 emissions would fall by roundly 50 million tonnes a year, with other air quality benefits through much lower emissions of nitrogen oxide, sulphur oxide, heavy metals and particle matter. The industry is also investigating the possibility of investing in carbon capture and storage and several projects are under consideration.”
In March, the government unveiled a series of measures to boost the oil and gas industry. These included improved research facilities and tax reliefs that it said will help the UK exploit its “remaining resources and overcome an increasingly challenging production environment”.
On the Today programme, Webb added that the government had “been doing the right thing” to encourage investment in the industry, instead of discouraging it through excessively high rates of taxation.
New Zealand to Switch to Fully Renewable Energy by 2035
New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.
New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.
Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.
Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”
The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.
Zero net emissions by 2050
Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.
Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.
She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.
Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”
A worldwide shift to renewable energy
Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.
Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.
Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.
Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.
How Going Green Can Save A Company Money
What is going green?
Going green means to live life in a way that is environmentally friendly for an entire population. It is the conservation of energy, water, and air. Going green means using products and resources that will not contaminate or pollute the air. It means being educated and well informed about the surroundings, and how to best protect them. It means recycling products that may not be biodegradable. Companies, as well as people, that adhere to going green can help to ensure a safer life for humanity.
The first step in going green
There are actually no step by step instructions for going green. The only requirement needed is making the decision to become environmentally conscious. It takes a caring attitude, and a willingness to make the change. It has been found that companies have improved their profit margins by going green. They have saved money on many of the frivolous things they they thought were a necessity. Besides saving money, companies are operating more efficiently than before going green. Companies have become aware of their ecological responsibility by pursuing the knowledge needed to make decisions that would change lifestyles and help sustain the earth’s natural resources for present and future generations.
Making needed changes within the company
After making the decision to go green, there are several things that can be changed in the workplace. A good place to start would be conserving energy used by electrical appliances. First, turning off the computer will save over the long run. Just letting it sleep still uses energy overnight. Turn off all other appliances like coffee maker, or anything that plugs in. Pull the socket from the outlet to stop unnecessary energy loss. Appliances continue to use electricity although they are switched off, and not unplugged. Get in the habit of turning off the lights whenever you leave a room. Change to fluorescent light bulbs, and lighting throughout the building. Have any leaks sealed on the premises to avoid the escape of heat or air.
Reducing the common paper waste
Modern technologies and state of the art equipment, and tools have almost eliminated the use of paper in the office. Instead of sending out newsletters, brochures, written memos and reminders, you can now do all of these and more by technology while saving on the use of paper. Send out digital documents and emails to communicate with staff and other employees. By using this virtual bookkeeping technique, you will save a bundle on paper. When it is necessary to use paper for printing purposes or other services, choose the already recycled paper. It is smartly labeled and easy to find in any office supply store. It is called the Post Consumer Waste paper, or PCW paper. This will show that your company is dedicated to the preservation of natural resources. By using PCW paper, everyone helps to save the trees which provides and emits many important nutrients into the atmosphere.
Make money by spreading the word
Companies realize that consumers like to buy, or invest in whatever the latest trend may be. They also cater to companies that are doing great things for the quality of life of all people. People want to know that the companies that they cater to are doing their part for the environment and ecology. By going green, you can tell consumers of your experiences with helping them and communities be eco-friendly. This is a sound public relations technique to bring revenue to your brand. Boost the impact that your company makes on the environment. Go green, save and make money while essentially preserving what is normally taken for granted. The benefits of having a green company are enormous for consumers as well as the companies that engage in the process.
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