The North
Sea Chapter of the International Association of Drilling Contractors (IADC)
has urged the Scottish and UK Governments and all areas of the oil and gas
industry to cooperate to better effect and ensure the sector takes a balanced,
long-term approach to the energy transition.
It comes in response to
the North Sea Transition Authority (NSTA) stating “a wave of new opportunities”
for the UK’s offshore supply chain will be created by projects following a
study it conducted in conjunction with the Global Underwater Hub (GUH).
While backing the report’s
general findings, with oil and gas supporting 75% of the UK’s energy
requirements, the IADC believes a longer-term outlook is needed in order to
secure jobs across the industry, stabilise the UK economy and ensure a safe
transition to cleaner energy.
Darren Sutherland, Chair
of the IADC North Sea Chapter, said: “The recently announced projects represent
a fraction of what is truly needed to meet growing UK energy demands, as well
as strengthen regional energy security, but frustratingly only amounts to
minimal opportunities for drilling contractors.
“The oil and gas industry
is aware of the environmental need to change the way the sector operates,
however it is a process that is likely to take decades to achieve and will
involve all areas of industry, including drilling contractors. The transition to
cleaner energy has to be done safely, sensibly and securely in terms of the
national economy, national energy supply and protection of jobs across the UK.
“We need to find the right
balance across the industry to ensure we meet our goals. This is not about
individual organisations profiting from the transition, it’s about ensuring we
have a viable sector and burgeoning economy which will benefit the whole
country. Different organisations have different priorities, but the priority of
all should be to look at the lifecycle of the transition and the wider impact
it will have.
“The UK Net Zero Strategy
states that energy security can be attained through a reduction in the
requirement for imported fossil fuels. We believe the success of the transition
can only be delivered by maintaining that security, which includes an active
drilling and production programme on the UK Continental Shelf.
“The offshore sector is
predicted to employ 200,000 people in the UK over the next decade, and the long
term implications of changes in this industry make it vital to undertake this
process at a pace that is cognisant of the job security and retraining required
of this highly specialised workforce.”
The call from the IADC
follows Offshore Energies UK (OEUK) saying more support was needed for supply
chain companies helping sustain oil and gas activity while the UK works towards
producing low-carbon energy. And it is a sentiment shared by the IADC, which
represents more than 800 drilling companies across the globe, including 14
contractors and more than 80 associates in the UKCS.
IADC Regional Director
Stuart Clow said: “The North Sea continues to be a significant source of the
UK’s energy supply, and drilling contractors are ready to work with operators
and government to ensure that supply is not interrupted.
“The experience, knowledge
and ingenuity of workers from the far north of Scotland to the south of England
is driving the energy transition in a similar way that generations before them
built the oil and gas industry into the crucial economic driver it has become.
“We are already seeing a
migration of drilling rigs and equipment to other areas of the world which in
turn reduces drilling and decommissioning capability in the North Sea and other
areas. Data shows more than 30 jack-up rigs have migrated from Asia, the
Americas and Europe to the Middle East over the past year.
“That is partly why
encouraging business, responsibly developing all forms of energy and supporting
the offshore supply chain in the North Sea are of the utmost importance.”