HOUSTON, TEXAS (Ofelia Paredes, Energy Analytics Institute, 5.Mar.2025) — The UK is at the start of an exciting new chapter devoted to the vital energy transition which integrates the North Sea’s carbon capture, hydrogen, wind and oil and gas resources. The global climate crisis demands the “transition happens at pace and, if we get it right, this chapter can truly be the best and cleanest yet,” the North Sea Transition Authority (NSTA) said in its Overview 2025.
The NSTA will be at the forefront and recently awarded the UK’s first ever permit for carbon storage to the Northern Endurance project, which kickstarts a multibillion pound-industry which is poised to create tens of thousands of jobs and drive the UK to net zero, NSTA chief executive Stuart Payne said in the overview published on 5 Mar. 2025.
“For many years reaching this milestone was an ambition. Collaborating with industry, government and other regulators, the NSTA has helped turned this into a reality. We are determined to propel many more CCS projects forward in the coming years,” Payne said.
Payne said in the new chapter the energy sector will play a pivotal role. Oil and gas will continue to be part of the energy mix for decades as the world transitions to lower carbon alternatives, and domestic production can and must keep getting cleaner, he said.
“The world-class supply chain, with its track record of tackling some of the most complex engineering challenges on earth, will be crucial in delivering decarbonized production and the CCS, hydrogen and floating wind projects the country needs. The North Sea has played a major role in the world’s energy mix for decades. Its global leadership of the energy transition has only just begun,” Payne said.
“The UK’s North Sea energy industry is an amazing success story. Following the award of the first oil and gas licence 60 years ago, the sector has been integral to keeping the lights on and homes heated nationwide. It has employed hundreds of thousands of skilled men and women and contributed billions of pounds to the economy,” Payne said.
Accerating the energy transition
In terms of accelerating the energy transition, the NSTA regulates and influences the oil, gas, offshore hydrogen and carbon storage industries. The NSTA works with government, industry and other regulators to achieve its 3 main objectives: accelerating the energy transition, energy production and security and emissions reduction.
Other highlights in the accreting the energy transition space follow:
— NSTA analysis shows the UK Continental Shelf can make a major contribution to net zero. Oil and gas infrastructure and capabilities can also be leveraged for CCS, offshore wind deployment, and hydrogen transport and storage;
— Carbon capture and storage (CCS) will play a crucial role in the transition to net zero, preventing hundreds of millions of tonnes of CO2 from entering the atmosphere. The NSTA is playing a significant role in ensuring the UK’s carbon capture and storage sector reaches its full potential;
— In late 2024, the NSTA awarded the permit for the UK’s first ever carbon storage project to the Northern Endurance Partnership, a hugely significant step on the journey to net zero;
— There are 3 further CCS projects in the government’s Track 1 and 2 cluster programs. The NSTA is preparing to make a decision on the award of a second storage permit in 2025;
— Hydrogen can be a key enabler to the energy transition, complementing offshore wind scale up and electrification and providing flexible back-up to intermittent sources;
— The North Sea has abundant wind, carbon storage and hydrogen resources. Integrating these assets, including with repurposed oil and gas infrastructure, will help them reach their full potential;
— Decommissioning is an obligation to licensees and a big opportunity for the UK supply chain. Minimizing costs will save money for taxpayers. The NSTA provides tools, data and guidance to support industry; and
“We’re constantly looking at how we can make best use of the data we collect, and our regulatory powers, to provide transparency and unlock opportunities to make decommissioning cost-effective as a key enabler to the energy transition,” NSTA head of decommissioning Alastair Bisset said in the overview.
— The NSTA is making more data available to more people than ever before through our Digital Energy Platform, which boasts an impressive and growing array of award-winning tools.
“Innovative use of data is playing a vital role in accelerating the North Sea’s energy transition to net zero. We continuously explore new ways to share valuable data which facilitates better decision-making and supports the delivery of a holistic, interconnected energy system,” chief information and financial officer Nic Granger said in the overview.
Energy production and security
In terms of energy production and security, the North Sea has been helping to provide light and warmth for UK homes and industry for more than 50 years and will continue to be an essential resource for supporting UK energy security for many years to come.
Other highlights in the energy production and security space follow:
— Oil and gas currently meet 3/4 of UK energy demand and will play an important role in the energy mix for years to come. Though it is declining, domestic production reduces the UK’s reliance on imports;
— Operators must stay focused on cutting production emissions to safeguard public confidence in the industry. Domestic production can only be justified if it continues to get cleaner; and
— NSTA analysis shows there is an opportunity to secure cheaper, easier and cleaner production by restarting production from existing wells which have been shut-in or are underperforming.
“The UKCS is home to more than 280 fields producing around 1 million barrels of oil and gas equivalent per day (MMboe/d) – a significant contribution to the nation’s energy position. Operators must continue to manage these assets efficiently, ensuring economic recovery,” NSTA director of operations Tom Wheeler said in the overview.
Emissions reductions
In terms of emissions reductions, the NSTA is fully committed to enabling the achievement of the UK government’s commitment to reach net zero emissions by 2050.
Other highlights in the emissions reductions space follow:
— North Sea industry has pledged to reduce its emissions 90% by 2040, on the way to net zero by 2050. While progress has been made, oil and gas production operations still make up 3% of UK emissions;
“Our annual Emissions Monitoring Report shines a light on industry performance and keeps track of progress against emission reduction targets. It’s an important tool for focusing attention on the pace of progress,” NSTA analysis and insights manager Niki Obiwulu said in the overview.
— The OGA Plan gives operators certainty on emissions reduction requirements and helps them make long-term plans for for emissions reductions, putting them on the pathway to net zero;
— As fuel combustion for power generation accounts for 4/5 of UKCS production emissions, electrification of offshore platforms can deliver the deepest cuts. Progress is being made;
— Regulatory compliance is essential for a level playing field and for industry to maintain its social license to operate. The NSTA takes a tiered approach to ensure operators meet their obligations;
— As the North Sea matures, the NSTA is increasing its focus on compliance with flaring and venting consents and well decommissioning obligations; and
— The NSTA is spearheading efforts to ensure the supply chain plays a full and leading role in the energy transition by highlighting contracting opportunities and promoting fairness and collaboration.
“Pathfinder made its name with the oil and gas industry but has been refocused and expanded to cover all emerging energy and decarbonization sectors. It is fast becoming the premier energy transition tool for suppliers,” NSTA head of supply chain Bill Cattanach said in the overview.
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By Ofelia Paredes reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
