The development of new oil and gas fields is always accompanied by extensive debates. In this context, the oil industry argues that oil and gas production will remain essential in the coming decades, contributing to job creation and reducing dependence on imports. In contrast, environmental activists emphasize that each new field means locking in greenhouse gas emissions, which is inconsistent with the goal of achieving carbon neutrality.
New Carbon Storage Requirements
If the government decides to develop new oil fields, it must require producers to cover the costs of permanent carbon gas storage, which gradually increases in their products. In other words, no vague promises about readiness for carbon capture and storage (CCS) will be accepted, and there must be a measurable obligation for carbon storage related to the right to produce.
The Rosbank and Jackdaw fields in the North Sea off the coast of England are among the fields currently under reconsideration. Previous approvals for these fields were revoked after a court found that environmental assessments did not adequately address the carbon emissions resulting from the combustion of produced fuels. Currently, over 150 academics and professionals have called in an open letter for any new approvals to include legal requirements for carbon storage.
Challenges and Solutions
Calculations show that carbon emissions from the Rosbank field products reach about 250 million tons, while this figure for the Jackdaw field is about 24 million tons. Therefore, carbon storage requirements should be based on the ultimate carbon emissions from the sold fuels, not just on the emissions resulting from their extraction.
Research indicates that if carbon storage requirements are linked to fossil fuel production, a reliable market for carbon storage will be created. The UK government predicts that the continental shelf of the country may have about 78 billion tons of theoretical carbon storage capacity. Meanwhile, the global operational capacity for carbon storage is expected to reach only about 64 million tons per year by 2025.
The key point is that securing funding and ensuring long-term contracts for carbon storage remains problematic. By establishing storage requirements for oil and gas producers, a sustainable market can be achieved where companies are free to respond to new requirements by securing their own resources.
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