Oil & Gas UK

Striking a Balance Index Striking a Balance Index Next Section Next

Executive summary and guide to this strategy

Section A

Issues for the UK offshore oil and gas industry in developing a sustainable development strategy

  • This strategy had its beginnings in the Oil and Gas Industry Task Force, the joint government-industry initiative begun in 1999. Since then, the concepts of sustainable development and corporate social responsibility have received increasing emphasis in government, industry and elsewhere.

  • Sustainable development is seen as having four elements - economic, social, environmental and stewardship, with delivery as an overarching imperative driving both implementation and further strategy development.

  • Oil and gas have underpinned the development of our modern society by providing reliable, relatively inexpensive and readily available sources of energy.

  • The concept of sustainable development presents a number of fundamental challenges to UK oil and gas operators - the non-renewable nature of extraction, the finite lifespan of operations on the UK continental shelf, and the environmental impact of our products when used by society.

  • The development of alternative energy technologies will offer business opportunities for some oil and gas, as well as other, companies. Many of our corporate parents are active in this research and the development of new energy sources.

  • The general term 'oil and gas industry' can be confusing. UKOOA represents exploration and production companies, operating offshore on the UKCS; around half of these are subsidiaries of integrated oil and gas companies (those that also have refining and distribution/products marketing operations). The offshore industry also comprises many large and small suppliers and contracting companies.

Section B

The UK offshore oil and gas industry's strategic plan to achieve operational performance in accordance with sustainable development principles

Vision

The industry's vision for sustainability combines maintaining a competitive industry with valuing our workforce and local communities, continual improvement in safety and environmental performance and prudent use of natural resources

Strategic objectives

The industry's strategic sustainable development objectives are elaborated under the headings: economic sustainability, social sustainability, environmental sustainability, stewardship of resources and delivery. Each section sets context, highlights achievements and in some cases identifies difficulties encountered

Actions relating to economic sustainability

These are developed under the headings:

  • operational efficiencies through co-operation - finding creative solutions for developing currently marginal discoveries, maximising synergies between UK and Norwegian operations, and development of a performance indicator for industry-wide recovery efficiency.

  • maximising mutual benefit with the supply chain and small/medium enterprises - generating new UK businesses and supporting UK business overseas, supply chain management and developing e-commerce.

  • developing new technologies - focusing on opportunity areas, stimulating venture capital support and exploring decommissioning technologies.

  • stimulating business activity - using the Internet to stimulate asset trading and information exchange.

Actions relating to social sustainability

These are developed under the headings:

  • safety and workforce conditions - setting new safety targets, developing leading indicators and focusing on behavioural change, as well as cross-industry engagement in both safety and workforce conditions.

  • enhancing recruitment, skills and training - producing a workforce development plan, attracting young people into the industry.

  • engagement with society - developing educational support, sharing experience of engaging with local communities, working with the fishing industry on improving information and safety systems.

  • managing structural change ahead - developing a mapping process for oil industry disciplines and career opportunities, increasing understanding of the long-term social implications of structural change (e.g., North Sea maturity, technology development).

Actions relating to environmental sustainability

These are developed under the headings:

  • environmental management - committing to continual environmental improvement; achieving 100% ratification of the Environmental Management System by independent verification within two years; developing survey/research priorities relating to environmentally sensitive areas in consultation with environmental NGOs, developing industry-wide environmental awareness and training programmes
  • increasing knowledge and understanding impacts - developing research strategy and best practice guidelines for Environmental Impact Assessments, forward assessment of greenhouse gases and commitment to timely data provision.

  • managing environmental impacts - produced water, greenhouse gases, targeting reductions in oil spills, using influence to ensure shipping related to our operations is conducted to proper standards.

Actions relating to the stewardship of resources

These are developed under the headings:

  • responsible use of our products, overall impacts - first steps to a dialogue on sustainability issues with the downstream industry, and long term plan to review the impact of our operations through whole life cycle.

  • design for environment - examination with contractors and suppliers of improved design potential for future installations and equipment.

  • reducing energy used and wastes generated - developing a long-term strategy for waste management and reviewing energy use.

  • end of operations legacy - commitment to Best Environmental Practice for drill cuttings accumulations, analysis of installations for decommissioning and assessment of solutions for pipelines, in all cases involving dialogue with stakeholders.

Key processes defined

Key processes are developed to support the delivery of this strategy. These include:

  • further development of performance indicators and targets.

  • an annual review mechanism linked to the publication of an integrated industry sustainable development report.

  • emphasis on partnership with government and engagement with the supply chain, trade unions and environmental groups.

  • commitment to share best practice in non-competitive areas within the industry.

Striking a Balance IndexStriking a Balance Index Next Section Next

© 2008 The United Kingdom Offshore Oil and Gas Industry Association trading as Oil & Gas UK
Registered Office: 2nd Floor, 232-242 Vauxhall Bridge Road, London, SW1V 1AU
Company No: 1119804
London: Tel 020 7802 2400  Fax 020 7802 2401    Aberdeen: Tel 01224 577 250  Fax 01224 577 251
Email info@oilandgasuk.co.uk  Web http://www.oilandgasuk.co.uk/

Legal and Copyright Issues and Privacy Statement