Create an “offshore energy mission control”, new report to argue

The UK needs to create an offshore energy “mission control” that has the power to cut through and connect different stakeholders, from government bodies, to oil and gas operators, renewables developers and financial institutions, argues a new report commissioned by Offshore Energies UK (OEUK) and created by management consultancy Baringa. The mission control should have the remit to drive an integrated energy transition and decarbonisation strategy, to oversee cross-border energy trading and carbon transport, and to establish a larger, unified carbon market. 

The study, The Future of The North Sea, also concluded the UK should concentrate on delivering “low-cost, high-value” energy, defined as being affordable, resilient, flexible enough to respond to varying demand, low-carbon, and sustainable. 

Duncan Sinclair, partner at Baringa, said: “as the North Sea oilfield comes to the end of its life, we need to be scientific about how it is used. The country must transition to net zero, but during the transition period we would be foolish to discard the assets at our disposal. The North Sea has a huge role to play here – but only if changes are made, not least by simplifying the way it is managed, allowing a single body to cut across bureaucracies and encourage working in the most optimum manner.” 

OEUK CEO David Whitehouse said: “The North Sea remains vital to the UK’s energy security and economic growth, contributing billions to the economy and supporting jobs in our industrial heartlands and beyond. 

“As we work together to secure a homegrown energy future, we should prioritise UK oil and gas alongside the acceleration of renewables. 

“An integrated energy system, combining oil, gas, hydrogen, wind, and carbon capture, will be central to delivering low-cost, high-value energy and maintaining global competitiveness. Having a diverse energy mix will help us be more flexible to the UK’s needs throughout the transition. 

“In an increasingly volatile world, energy security is a matter of national security. The UK must prioritise homegrown production and unlock the full potential of our sector to drive investment, jobs, and long-term growth.” 

The report argues the offshore energy mission control should have the ability to cut through different government departments, connecting all stakeholders, policies, plans and regulations applying to the sector. It would aim to accelerate technology commercialisation, establish routes to market for renewable energy, hydrogen and carbon capture, and oversee the offshore and onshore infrastructure required for the energy transition. Finally, it would coordinate with Europe, enabling better cross-border trading. 

The alternative – leaving these responsibilities in the hands of several groups across the UK’s public and private sector with varying degrees of coordination – risks sacrificing efficiency and speed. 

For these improvements to occur, several changes are necessary, the report argues. Amongst these are the need to deliver – or repurpose existing – complex physical infrastructure; to alter or guarantee existing and new markets and supply chains; to help drive down costs; and to accelerate learning curves inherent in the development of new technologies.  

Ends 

For more information, download a copy of the report. 

For more information, contact: 

Damian Kerr 

damian.kerr@baringa.com 

+44 7720 783242 

About Baringa

Baringa is a global management consultancy operating across sectors including energy, financial services, consumer products and services and government.

We set out to build the world’s most trusted consulting firm – creating lasting impact for clients and pioneering a positive, people-first way of working. We work with everyone from FTSE 100 names to bright new start-ups, in every sector. We have hubs in Europe, the US, Asia and Australia, and we can work all around the world – from a wind farm in Wyoming to a boardroom in Berlin. Find us wherever there’s a challenge to be tackled and an impact to be made.

Find out more at baringa.com or on LinkedIn.