The analysis indicates that the average GHG intensity of production in the UK and Norwegian areas of the North Sea was 12 kgCO₂e/boe in 2021. Further study reveals that nearly two-thirds of total production had an intensity below this basin-wide average. Meanwhile, assets responsible for just 20% of total production generated half of the basin’s total GHG emissions.
 

Overall, individual assets across the basin displayed a wide variability, ranging in GHG intensity from less than 1 kgCO₂e/boe to nearly 150 kgCO₂e/boe, reports S&P. Such a wide range is consistent across all the regions that have been explored to date and highlights the challenges of averages, the report finds.
 

‘In every play where we have looked, we continue to find wide variability in the greenhouse gas intensity, with any one asset potentially being significantly different from the average,’ comments Kevin Birn, Global Head for S&P Global Commodity Insights’ newly formed Centre of Emissions Excellence. ‘The new S&P Global Commodity Insights capability delivers a level of granularity that is essential for governments, investors and, frankly, the market to truly understand the nature of upstream oil and gas emissions, down to individual assets and the drivers behind each asset’s emissions, such as fuels that get used.’
 

Several key factors have been found to influence the GHG intensity of an asset. These include productivity, where younger and more productive fields tend to be less GHG intensive than older, more geologically challenging fields. The latter also may require energy-intensive enhanced recovery techniques, increased drilling to maintain productivity, and older technology can also put upward pressure on emissions intensity, according to S&P.
 

Other factors that impact the GHG intensity of individual assets include the degree to which operations can be electrified and the degree of venting and flaring.

The analysis also found that, on average, UK production in the North Sea was nearly three times more GHG intensive (23 kgCO₂e/boe) than Norwegian production (8 kgCO₂e/boe).
 

‘Norwegian operations were advantaged on a GHG intensity basis as, on average, fields tended to be less mature and with a greater share of output from larger, more productive, and technologically advanced operations. Additionally, Norway benefited from electrification projects that tie back to Norway’s relatively low-emission, hydro-dominated power grid,’ explains S&P.
 

By comparison, UK North Sea output tended to come from smaller, more mature or more geologically challenging fields, as well as from fields with older infrastructure and technology. These factors resulted in lower productivity and thus higher GHG intensity, the analysis finds. UK operations also had wider use of flaring – flaring and venting accounted for 28% of total UK North Sea emissions compared to 9% for Norway – and, unlike Norway, did not benefit from electrification projects to offset emissions from fuel combustion.
 

‘With the acceleration of global ambition to tackle climate change, there is increasing need by market participants to better understand the GHG competitiveness of oil and gas assets globally,’ says Birn. ‘S&P Global Commodity Insights is supporting this process by shedding new light and understanding on the true nature of upstream GHG emissions at an unprecedented level of granularity.’