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Industry failing to meet climate change expectations, warns OGUK boss

Oil and Gas UK CEO Deirdre Michie
Oil and Gas UK CEO Deirdre Michie

The head of Oil and Gas UK has warned the industry that it is not meeting the expectations of society around climate change.

CEO Deirdre Michie opened the OGUK Industry Conference at the AECC this morning, stating the sector must meet this “key test” in order to protect its licence to operate.

Ms Michie said the industry must “step up” to meet the extraordinary pace of change around the “real and present danger of climate change”, while praising the efforts of outspoken activist Greta Thunberg.

She said: “Are we proactively meeting the expectations of the society we live and work in? No not really”.

“We do need to step up and show leadership.

“I would like to suggest that as the UK’s offshore oil and gas industry has so many talented people, engineers, data scientists, remote vehicle operators, technologists and more, we can find and deliver the solutions needed while at the same time positioning ourselves to be at the heart of an energy system that also needs to change.

“I would like to reassure Greta- we are listening, because we want the world to be a better place too.”

Ms Michie confirmed the industry body will publish its road map later this year to achieve Vision 2035 – setting out how the sector can add a generation to production life to the North Sea and transition for a sustainable future.

During her speech Ms Michie also addressed concerns around the supply chain.

Although operators are seeing a boost from the “come back” of the industry since the downturn, some parts of the supply chain remain challenged.

Ms Michie said operators have to make a choice around contracting models that more evenly share risk and reward.

She said: “That is to ensure a better share and more balance in terms of the risk and return now or find yourselves and industry as a whole or paying for it sooner rather than later.”

Around 400 delegates are expected at the event, which is taking place over two days at the AECC, themed around the industry’s energy transition.

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