Beyond Petroleum – the UK Oil and Gas Industry Vision 2035

As the Oil and Gas Authority continues to work with industry to develop a single, compelling vision for the UK oil and gas industry, it is important to ensure that the Vision adequately addresses the threats and opportunities created by the transition to a low carbon future.

Aberdeen risks being left stranded

As North Sea oil and gas production continues to decline and at the same time low carbon energy starts to replace fossil fuels, Aberdeen risks being left stranded.

Whilst oil and gas will continue to be important for Aberdeen for many years to come, diversification now into other sectors will be important for long term prosperity. Despite maximising economic recover (MER) and other initiatives, the inexorable decline in N. Sea production means that oil and gas activity in Aberdeen will never return to levels of recent years.

Lower and more volatile oil prices are a result of US shale oil and an excess of supply vs demand. Long term demand will also be affected by the low carbon transition and the use of electric vehicles.

Aberdeen has benefitted over the last 40 years from a singular focus on oil and gas, at the expense of other industries. Now the North Sea is in decline and oil prices are low this is a major challenge.

However, potential exists to redeploy the Aberdeen oil and gas supply chain and its technology into new low carbon sectors. Aberdeen could be a world leader in low carbon energy services, just as It is in oil and gas.

To ensure Aberdeen’s long term prosperity requires urgent diversification. Major investment and effort is required now to get past this myopic insularity. Oil and gas technology, know-how and innovation could be leveraged into high growth low carbon sectors of wind, wave, tidal, hydrogen, heat and water.

Beware: Aberdeen’s institutions and many major businesses are focussed on oil and gas, so don’t expect them to provide leadership in diversification. Forward thinking business leaders, the media and local/national authorities need to take action.

With the vision to be so, Aberdeen could be a world leader in low carbon energy services. But only if it acts now.

Oil and Gas Diversification is key to Scotland’s Low Carbon Future

In a study on Oil and Gas Diversification for Scottish Enterprise, Pale Blue Dot Energy highlighted the opportunity for Scotland to deploy surplus oil and gas capability on emerging future energy sectors including Wave and Tidal, CCS, Hydrogen and Heat. There is too little focus on Diversification, particularly in the North East. Oil and gas businesses should develop Diversification strategies in order to manage the long-term decline in oil and gas driven by price uncertainty and the Low Carbon transition.

Pale Blue Dot Energy to Deliver Oil & Gas Diversification Project

Pale Blue Dot Energy have been awarded a landmark study by Scottish Enterprise looking at opportunities for diversification of the oil and gas supply chain in Scotland. This follows the recent period of low oil prices and the knock-on effect for business and jobs in oil and gas supply chain. Diversification is an essential part of the solution to help maintain and develop opportunities for Scottish Oil and Gas businesses. The review will consider potential diversification into a wide range of sectors, including; decommissioning, offshore wind and Carbon Capture and Storage, Hydrogen and Heat. The study will be delivered with BVG Associates and Abbott Risk Consulting.