The Oil and Gas Authority (OGA) said it will monitor companies to ensure they are abiding by its revised strategy outlining net zero obligations.
The strategy, which is now in force, reflects the energy transition and includes a range of obligations on companies in the industry.
These cover increasing efforts to reduce production emissions, support carbon capture and storage (CCS) projects and unlock clean hydrogen production.
“Oil and gas currently provide around 75% of UK energy consumption and government forecasts show they will remain part of the energy mix for the foreseeable future, as we transition to net zero,” said OGA in a statement.
“The OGA believes that the industry has the skills, infrastructure and capital necessary to help ensure that the net zero target is achieved.”
The revised strategy also calls on industry to work with the supply chain and actively support CCS projects.
The OGA will monitor closely and ensure that carbon costs are considered in regulatory decisions.
The authority is updating documents to help industry understand how operations might need to alter in order to achieve the new requirements.
A new stewardship expectation is also being developed to reflect the revised strategy and its net zero target.
The revised strategy was laid before Parliament on 16 December 2020 and came into force last Thursday (11 February 2021).