Press and journal part 118 Sep 2024 09:10
Industry and government need to be on the “same page” in order to support jobs and the transition to cleaner energy in the North Sea or risk “losing out” to other energy producing areas of the world, BP vicepresident Doris Reiter has warned.
Ahead of the UK Government’s budget in October, BP’s first female to lead the North Sea business said the UK needs a fiscal and regulatory environment that enables offshore workers to “lead the world in the industries of the future”.
In her speech to an audience in Aberdeen, she welcomed previous Labour government statements that oil and gas in the North Sea would be a “key component of the UK energy landscape for decades to come”, adding there is a “but” as this vision relies crucially on BP investment in the UK.
“But – and there is a but – we need a fiscal and regulatory environment that enables that,” she said.
“BP’s North Sea business needs to stand on its own two feet in our global portfolio. But in a scenario where my business becomes uncompetitive against investment options elsewhere in the world, and this is likely true for the rest of the industry – our basin will lose out.
“That means opportunities missed by my colleagues in BP, by my fellow North Sea operators and the supply chain.”
Ms Reiter delivered a keynote speech at the Offshore Energies UK event on a “monumental” occasion, marking 60 years to the day that the energy giant first received its licence to explore for oil and gas in the North Sea from the then Ministry of Power.
The permit was dated September 17 1964 and was numbered “P001” clearing the way for BP to “bore for and get petroleum from the seabed and subsoil under the sea”.
The company has plans to invest billions in North Sea oil and gas projects such as the giant Clair field west of Shetland and Schiehallion, along with the Murlach, Kate and Mungo fields near the BPoperated ETAP hub in the Central North Sea.
Ms Reiter also outlined BP’s plans to invest in major clean energy and decarbonisation projects. BP is also partnering with Aberdeen City Council to develop a green hydrogen hub in the city.
She highlighted the potential impact on jobs by mentioning three generations of one family, the Pitcaithlys, who have all worked for BP.
This included 23-year-old apprentice Lara and her father Graeme, who work on BP’s flagship Clair project, and grandfather
John, who came up through the BP ranks in the North Sea working on the Forties Alpha platform.
However, she said a future in the industry for “Lara and her peers... can only happen if this industry continues to prosper”.
She referenced a recent interview she did in Energy Voice as well as the latest report from analysts Wood Mackenzie with “another worrying headline”, which said the UK North Sea would be “fatally wounded in less than five years” if the UK persisted in its current plans including the removal of investment allo
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