Environmental Report 1999 Index

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The Offshore Oil and Gas Industry in the UK UKOOA represents companies licensed by the Government to explore for and produce oil and gas in UK waters. This report deals with those companies and their exploration and production activities. We acknowledge that there are industries downstream from our member's businesses (e.g. tanker operations, terminals, gas plants, refineries, and manufacturers using oil and gas products as raw materials) which raise additional environmental and consumption issues. However, they are not represented by UKOOA and, therefore, their activities are beyond the scope of this report. (Please see the back of this report for other useful addresses). More information about the UK's offshore oil and gas industry is contained in the publication 'Britain's Offshore Oil and Gas', which is available free from UKOOA. Economics With continued investment and advances in technology, Britain has the ability to remain self-sufficient in oil and gas for many years to come. Our estimates suggest that we can recover as much oil and gas again as we have recovered so far. The production and use of hydrocarbons enable most people in our society to enjoy a high standard of living. As well as providing fuels for heating, light and transport, hydrocarbons and their derivatives are the ultimate source for thousands of everyday products including therapeutic drugs, plastics, cleaning products and synthetic fibres. In the absence of a similarly reliable source of energy and raw materials available 24 hours a day, every day of the year and in the quantities which a modern society requires, oil and gas must continue to be the energy source of choice. If this supply should diminish for whatever reason it would have a big impact on our daily lives. Anyone who recalls the fuel shortage of the 70's or the coal strike of the 80's will realise the place energy holds in our society. Even if an energy supply could be imported, as was seen in the past, the country might experience energy shortages and see the displacement of jobs to other parts of the world where oil and gas continues to be exploited. The industry believes it has the skills and technology to deliver this energy source to the citizens of the UK if they support the industry in that future exploitation. The Future The UK Continental Shelf (UKCS) is a mature area in which almost all large accumulations of hydrocarbons have been identified and are being produced. Future developments are likely to be small-scale ones - for example, producing small reserves from existing facilities or using floating production systems to develop geographically remote resources. The technologies used on the UKCS have advanced and, as a result, it is unlikely that we will again see the construction of large steel and concrete structures. In fact some of the major facilities installed during the peak years are now being scheduled for decommissioning over the coming years. Already, 20 structures on the UKCS have been decommissioned, the most recent was BP Amoco's Donan Field facility in 1998. The focus of most future exploration and development activity will be on the Atlantic Margin, west of Britain. This region has very different characteristics to those in the North Sea: deeper water, more severe technical challenges, and lack of existing infrastructure. All of these difficulties will need to be addressed to ensure a long-term future for UK oil and gas production. The Atlantic Margin will make serious demands on the industry, but it is rising to the challenge and developments have already begun. In these, as in all future developments, UKOOA's member companies will continue to ensure that these valuable resources are developed in a way that maximises the economic and social benefits and minimises adverse environmental impacts.