The NSTA has mandated new guidelines for oil and gas producers, emphasising the need for decarbonisation to meet net-zero targets and secure regulatory approvals. 

The UK's energy sector, which is still reliant on oil and gas for three-quarters of its needs, is under pressure to reduce emissions, which account for around 3% of the country's total greenhouse gases. 

The NSTA has outlined four key areas for decarbonising production: electrification, investment and efficiency, inventory scrutiny, and flaring and venting reduction.  

The regulator said the oil and gas industry has made significant strides, cutting production emissions by nearly one-quarter since 2018, with flaring almost halved from 2018 to 2022.  

Despite these efforts, power generation remains the largest contributor to production emissions. 

Electrification and low-carbon power are central to the NSTA's plan.  

The authority has made it clear that without reasonable electrification efforts, it will not approve field development plans, potentially restricting access to future hydrocarbon resources.  

The plan also calls for increased scrutiny of high emissions-intensity assets and their production cessation dates. 

Furthermore, it suggests that closing certain low-producing, high-polluting installations could pave the way for cleaner, more productive new assets, thus reducing overall emissions on the UK Continental Shelf.  

Operators have also been urged to take immediate action and allocate budgets to minimise flaring and venting, particularly methane, and to monitor and reduce fugitive emissions. 

NSTA chief executive Stuart Payne said: “Energy production, reducing emissions and accelerating the energy transition are at the heart of everything we do. The plan strikes the right balance in supporting industry in its work producing the oil and gas which we need and will continue to need in the coming decades, while at the same time playing its role in reducing greenhouse gas emissions. 

“The plan will help to secure the crucial part the North Sea will play in meeting the UK’s energy needs and provide reassurance that the industry can and does place a very high value in cleaning up production and cutting emissions.” 

In October 2023, the NSTA awarded 27 oil and gas exploration licences in the North Sea to several companies including Aker BP, BP, Equinor, Ithaca Energy, Shell and TotalEnergies.