North Sea Transition Authority

Last updated

Oil and Gas Authority
North Sea Transition Authority (21 March 2022 [1] –present) [lower-roman 1]
FormerlyOil and Gas Authority Limited (1 July 2015 [2] –11 July 2016 [3] )
Company type Private limited company
Founded1 July 2015;9 years ago (2015-07-01) [2]
Headquarters Aberdeen, Scotland [4]
Key people
  • Liz Ditchburn (Chairman) [5]
  • Stuart Payne (Chief Executive) [6]
Owner Secretary of State for Energy Security and Net Zero [7]
Website nstauthority.co.uk

The North Sea Transition Authority (NSTA), known as the Oil and Gas Authority (OGA) until March 2022, [8] [9] is a private company limited by shares wholly owned by the Secretary of State for Energy Security and Net Zero. It is responsible for maximising the economic recovery of oil from the North Sea. [10] [11] It is empowered to license and regulate activity in relation to oil and gas in the United Kingdom, including oil and gas exploration, carbon capture and storage, and offshore gas storage. [12]

Contents

The NSTA’s role is to take the steps necessary to: [13]

  1. secure that the maximum value of economically recoverable petroleum is recovered from the strata beneath relevant UK waters; and, in doing so,
  2. take appropriate steps to assist the Secretary of State in meeting the net zero target, including by reducing as far as reasonable in the circumstances greenhouse gas emissions from sources such as flaring and venting and power generation, and supporting carbon capture and storage projects.

Established in April 2015 as a non-departmental public body of the then Department for Business, Energy and Industrial Strategy (now the Department for Energy Security and Net Zero), on 1 October 2016 the Oil and Gas Authority was incorporated, with the then Secretary of State for Business, Energy and Industrial Strategy (now the Secretary of State for Energy Security and Net Zero), the sole shareholder and headquartered in Aberdeen with another office in London, which is also its registered company address. As of the 22 October 2024, Liz Ditchburn is the chair.

History

In June 2013, the UK government asked Sir Ian Wood of Wood Group to conduct a review to maximise the recovery of oil and gas from the UK Continental Shelf. One of the recommendations of the Wood Review was the creation of an independent economic regulator for the sector. [14] Subsequently the OGA was launched on 1 April 2015 as an executive agency of the Department of Energy and Climate Change. The Energy Act 2016, which received Royal Assent in May 2016, created the legislative framework to formally establish the OGA as a government company, limited by shares under the Companies Act 2006, with the then Secretary of State for Business, Energy and Industrial Strategy (now the Secretary of State for Energy Security and Net Zero) the sole shareholder. The Energy Act 2016 also provided the OGA with new regulatory powers, including the ability to participate in meetings with operators, to have access to data, provide dispute resolution and introduce a range of sanctions such as enforcement notices and fines of up to £1 million. On 6 March 2019, Frances Morris-Jones was replaced by Tim Eggar as the chairman of the authority.

Fracking

On 1 November 2019, following a report from the Oil and Gas Authority, the government called a halt to all fracking in the UK "with immediate effect" [15] and warned shale gas companies that it would not support future projects. [16]

Corporate information

Name

On 1 July 2015, Oil and Gas Authority Limited was incorporated as a private limited company in England and Wales under the Companies Act 2006, [2] although following incorporation it remained dormant for financial year 2015-2016. [17] Pursuant to the Energy Act 2016, Oil and Gas Authority Limited was renamed Oil and Gas Authority on 12 July 2016. [18] Under the Companies Act 2006, private limited companies are required to include the word "limited" in their names unless exempted; [19] the Energy Act 2016 provided for such an exemption, [20] which came into force on 12 July 2016. [21]

On 21 March 2022, the Oil and Gas Authority adopted the trading name of North Sea Transition Authority, [1] although its legal name remains unchanged. [lower-roman 1] In a House of Commons debate on 29 March 2022, Caroline Lucas accused the government of greenwashing over the change of name. [23] Following this, on 31 March 2022, Greg Hands, Minister for Energy, Clean Growth and Climate Change, said in a written statement to the House of Commons that "[t]he new name better represents the breadth of work it now undertakes and its pivotal role in supporting the UK upstream oil and gas industry to achieve net zero emissions." [24]

Functions, powers, and property

Under Part 1 of the Energy Act 2016, the function, powers, and property of the Secretary of State for Energy Security and Net Zero may be transferred to the Oil and Gas Authority by way of a statutory instrument. [25]

Personnel

Part 1 of the Energy Act also provides for the Secretary of State to transfer staff working for the Department for Energy Security and Net Zero to the Oil and Gas Authority. [25] From 2015 until December 2022, Andy Samuel was chief executive, [26] being replaced by Stuart Payne in January 2023, and since 2019 Tim Eggar has been chairman of the board. [27]

In September 2021 Greenpeace reported that eight OGA's 13 board members and senior managers had previously worked in the industry, and three held sizeable shareholdings in oil firms. The OGA said their knowledge was vital in helping to regulate the sector. [28]

Ownership

Oil and Gas Authority has one ordinary share, which from 2016 until 2023 was owned by the Secretary of State for Business, Energy and Industrial Strategy. [7] Its owner remained unchanged, with each subsequent confirmation statement showing no shareholder changes, [29] until 3 May 2023 when it was transferred to the Secretary of State for Energy Security and Net Zero by order in council upon the incorporation of that office. [lower-roman 2]

Notes

  1. 1 2 The Companies Act 2006, section 81(1) provides that "A change of a company’s name has effect from the date on which the new certificate of incorporation is issued." [22] As of 24 April 2022, a new certificate of incorporation changing the Oil and Gas Authority's legal name to North Sea Transition Authority has not been issued; its legal name therefore remains Oil and Gas Authority.
  2. ↑ On 3 May 2023 The Secretaries of State for Energy Security and Net Zero, for Science, Innovation and Technology, for Business and Trade, and for Culture, Media and Sport and the Transfer of Functions (National Security and Investment Act 2021 etc) Order 2023 came into force, [30] article 8(1) of which transferred "all property, rights and liabilities to which the Secretary of State for Business, Energy and Industrial Strategy is entitled or subject at the coming into force of this Order in connection with any energy function", where 'energy function' means any function so far as "(a) it is transferred by article 7 [of the Order], or (b) it was entrusted to the Secretary of State for Business, Energy and Industrial Strategy immediately before 6th February 2023 and has before the making of this Order been entrusted to the Secretary of State for Energy Security and Net Zero." [31]

Related Research Articles

Centrica plc is a British multinational energy and services company with its headquarters in Windsor, Berkshire. Its principal activity is the supply of electricity and gas to consumers in the United Kingdom and Ireland.

<span class="mw-page-title-main">Graham Stuart (politician)</span> British politician

Graham Charles Stuart is a British Conservative Party politician who has served as the Member of Parliament for Beverley and Holderness since 2005. He previously served in various ministerial positions under Prime Ministers Theresa May, Boris Johnson, Liz Truss and Rishi Sunak between 2018 and 2024.

<span class="mw-page-title-main">Office of Gas and Electricity Markets</span> United Kingdom government non-ministerial department

The Office of Gas and Electricity Markets (Ofgem), supporting the Gas and Electricity Markets Authority, is the government regulator for the electricity and downstream natural gas markets in Great Britain. It was formed by the merger of the Office of Electricity Regulation (OFFER) and Office of Gas Supply (Ofgas).

<span class="mw-page-title-main">Energy policy of the United States</span>

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.

<span class="mw-page-title-main">Energy policy of the United Kingdom</span> United Kingdom legislation

The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.

Timothy John Crommelin Eggar is a British businessman and former politician. He holds positions on the boards of multiple organisations including Shiplake College and Cape plc, and was the Conservative MP for Enfield North between 1979 and 1997.

<span class="mw-page-title-main">Energy security</span> National security considerations of energy availability

Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.

<span class="mw-page-title-main">Department of Energy and Climate Change</span> Former department of the UK Government

The Department of Energy and Climate Change (DECC) was a department of the Government of the United Kingdom created on 3 October 2008, by Prime Minister Gordon Brown to take over some of the functions related to energy of the Department for Business, Enterprise and Regulatory Reform, and those relating to climate change of the Department for Environment, Food and Rural Affairs.

<span class="mw-page-title-main">Greenhouse gas emissions by the United Kingdom</span> Overview of the greenhouse gas emissions by United Kingdom

In 2021, net greenhouse gas (GHG) emissions in the United Kingdom (UK) were 427 million tonnes (Mt) carbon dioxide equivalent, 80% of which was carbon dioxide itself. Emissions increased by 5% in 2021 with the easing of COVID-19 restrictions, primarily due to the extra road transport. The UK has over time emitted about 3% of the world total human caused CO2, with a current rate under 1%, although the population is less than 1%.

<span class="mw-page-title-main">Fracking in the United Kingdom</span>

Fracking in the United Kingdom started in the late 1970s with fracturing of the conventional oil and gas fields near the North Sea. It was used in about 200 British onshore oil and gas wells from the early 1980s. The technique attracted attention after licences use were awarded for onshore shale gas exploration in 2008. The topic received considerable public debate on environmental grounds, with a 2019 high court ruling ultimately banning the process. The two remaining high-volume fracturing wells were supposed to be plugged and decommissioned in 2022.

<span class="mw-page-title-main">Petroleum Act 1998</span> United Kingdom legislation

The Petroleum Act 1998 is an act of the Parliament of the United Kingdom which consolidated arrangements for the licensing, operation and abandonment of offshore installations and pipelines. As a consolidation Act, it did not change the substantive law, although certain Acts were amended and repealed.

<span class="mw-page-title-main">Amos Hochstein</span> Senior advisor for energy security

Amos J. Hochstein is an American businessman, diplomat, and former lobbyist. He is a top national and economic security official in the Biden administration. Hochstein has worked in the U.S. Congress, has testified before congressional panels and has served in the Barack Obama administration under Secretaries of State Clinton and Kerry. He was appointed Deputy Assistant Secretary of State in 2011 and as Special Envoy and Coordinator for International Energy Affairs in 2013. In 2015, President Barack Obama nominated Hochstein to be the Assistant Secretary of State for Energy Resources but the Senate did not act on the nomination.

<span class="mw-page-title-main">Energy Act 2016</span> United Kingdom legislation

The Energy Act 2016 is a UK Act of Parliament relating to UK enterprise law and energy in the UK. It created a new Oil and Gas Authority, meaning that a quango rather than a government minister deals with the oil and gas industry.

<span class="mw-page-title-main">Mineral Workings (Offshore Installations) Act 1971</span> United Kingdom legislation

The Mineral Workings Act 1971 is an act of the Parliament of the United Kingdom which provided for the safety, health and welfare of people on installations undertaking the exploitation of, and exploration for, mineral resources in UK offshore waters.

<span class="mw-page-title-main">Oil and Gas (Enterprise) Act 1982</span> United Kingdom legislation

The Oil and Gas (Enterprise) Act 1982 is an Act of the Parliament of the United Kingdom which started the process of privatisation of the oil and gas industries in the UK. It empowered the government to float off and sell shares in Britoil the upstream production side of the British National Oil Corporation. It ended the British Gas Corporation’s monopoly on the transportation and supply of gas, opening up the gas market to other gas suppliers. The Act made miscellaneous provisions relating to the oil and gas industries concerning Petroleum Licences and Offshore Installations.

<span class="mw-page-title-main">Petroleum and Submarine Pipe-lines Act 1975</span> United Kingdom legislation

The Petroleum and Submarine Pipe-lines Act 1975 was an act of the Parliament of the United Kingdom which addressed the licensing, ownership, exploitation, production, transportation, processing and refining of petroleum and petroleum products in the UK. Enacted in 1975 when the UK’s first North Sea oil was produced, the act aimed to provide greater public control of the oil industry. The act established the British National Oil Corporation and a National Oil Account; modified the conditions of petroleum licences; controlled the construction and use of underground pipelines; and controlled the development of oil refineries.

The onshore oil and gas resources in the United Kingdom are located in a number of provinces corresponding to prospective sedimentary basins. Provinces and Basins include the Wessex-Channel Basin, Weald Basin, Worcester Basin, Cheshire Basin, East Midlands Province, West Lancashire Basin, NE England Province, Northumberland-Solway Basin, Midland Valley of Scotland, and the Orcadian Basin.

<span class="mw-page-title-main">Minister of State for Energy Security and Net Zero</span> Junior minister in the British Government

The Minister of State for Energy Security and Net Zero is a mid-level position in the Department for Energy Security and Net Zero in the Government of the United Kingdom.

<span class="mw-page-title-main">Oil industry in Scotland</span>

The oil industry in Scotland was largely created upon the discovery of North Sea oil. The country is one of the world’s leading oil producers, and in 2020, oil and gas contributed £13.8 billion to the Scottish economy and supported 100,000 jobs. Commercial extraction of oil on the shores of the North Sea dates back to 1851, when James Young retorted oil from torbanite mined in the Midland Valley of Scotland.

NEO Energy is a UK-based offshore oil and gas company operating on the United Kingdom Continental Shelf in the North Sea. It was founded in July 2019 and is backed by the Norwegian private equity firm HitecVision, which merged it with Verus Petroleum, another of its UKCS oil and gas producers, in October that year. NEO Energy produced 80,999 barrels of oil equivalent on average per day in 2022. The company has been described as part of a group of new entrants to the UK offshore industry following the 2014 price crash, with others including Neptune Energy, Harbour Energy's Chrysaor, Zennor Petroleum, and Ithaca Energy-owned Siccar Point Energy. It was listed by Grant Thornton's 2024 Scotland Limited report as the highest-earning private company in Scotland in 2024 before interest, tax, depreciation and amortisation (EBITDA), up from 26th the previous year, and the second-highest by turnover. It did not appear in the top five companies by number of employees.

References

  1. 1 2 "Oil and Gas Authority changes name to North Sea Transition Authority". North Sea Transition Authority (NSTA). Retrieved 24 April 2022.
  2. 1 2 3 "Certificate of Incorporation". Companies House. 1 July 2015. Retrieved 24 April 2022.
  3. ↑ "Statement of Change of Name". Companies House. 29 September 2016. Retrieved 24 April 2022.
  4. ↑ "Contacts". North Sea Transition Authority (NSTA). Retrieved 24 April 2022.
  5. ↑ https://www.gov.uk/government/news/new-chair-of-north-sea-transition-authority-appointed
  6. ↑ "Board of Directors". North Sea Transition Authority (NSTA). Retrieved 24 April 2022.
  7. 1 2 "Confirmation Statement". Companies House. 15 September 2016. Retrieved 24 April 2022.
  8. ↑ NTSA. "North Sea Transition Authority". NSTA - Overview. North Sea Transition Authority. Retrieved 7 April 2022.
  9. ↑ Kulovic, Nermina (21 March 2022). "UK oil & gas regulator rebrands to reflect role in energy transition". Navingo. Offshore Energy. Retrieved 7 April 2022.
  10. ↑ "Oil and Gas Authority (2015)" Parliamentary Debates (Hansard) . House of Commons. 17 September 2015. Retrieved 26 April 2022.
  11. ↑ "Oil and Gas Authority: Remit (2021)". Parliamentary Debates (Hansard) . House of Lords. 2 December 2021. Retrieved 26 April 2022.
  12. ↑ "North Sea Transition Authority (NSTA) (UK)". Practical Law. Thomson Reuters. 2022. Retrieved 26 April 2022.
  13. ↑ "What We Do". Oil and Gas Authority. Retrieved 19 April 2018.
  14. ↑ "Wood Review". Wood Review. Retrieved 9 August 2015.
  15. ↑ "Fracking halted after government pulls support". BBC News. BBC. 2 November 2019. Retrieved 2 November 2019.
  16. ↑ "Fracking banned in UK as government makes major U-turn". The Guardian. The Guardian. 2 November 2019. Retrieved 2 November 2019.
  17. ↑ "Oil and Gas Authority Limited: Dormant Accounts (31 March 2016)". Companies House. 25 April 2016. Retrieved 24 April 2022.
  18. ↑ "Energy Act 2016, section 1(1)". legislation.gov.uk. The National Archives. 12 July 2016. Retrieved 24 April 2022.
  19. ↑ "Companies Act 2006, section 59". legislation.gov.uk. The National Archives. 1 October 2009. Retrieved 24 April 2022.
  20. ↑ "Energy Act 2016, section 1(3)". legislation.gov.uk. The National Archives. 12 July 2016. Retrieved 24 April 2022.
  21. ↑ "The Energy Act 2016 (Commencement No. 1 and Savings Provisions) Regulations 2016, regulation 3(a)". legislation.gov.uk. The National Archives. 23 May 2016. Retrieved 24 April 2022.
  22. ↑ "Companies Act 2006, section 81(1)". legislation.gov.uk. The National Archives. 1 October 2009. Retrieved 24 April 2022.
  23. ↑ "Oil and Gas Authority: Change of Name (2022)" Parliamentary Debates (Hansard) . House of Commons. 29 March 2022. Retrieved 26 April 2022.
  24. ↑ "North Sea Transition Authority (2022)" Parliamentary Debates (Hansard) . House of Commons. 31 March 2022. Retrieved 26 April 2022.
  25. 1 2 "Energy Act 2016, Part 1". legislation.gov.uk. The National Archives. 1 October 2016. Retrieved 24 April 2022.
  26. ↑ "Andy Samuel". GOV.UK. Retrieved 24 April 2022.
  27. ↑ "Government appoints Tim Eggar as new Chair of Oil and Gas Authority (OGA)". GOV.UK. 6 March 2019. Retrieved 24 April 2022.
  28. ↑ "Environmentalists warn of close ties between oil and gas sector and UK's North Sea regulator". the Guardian. 17 September 2021. Retrieved 22 September 2021.
  29. ↑ See Confirmation statements filed for Oil and Gas Authority for 2017, 2018, 2019, 2020, 2021, and 2022 at Companies House.
  30. ↑ "The Secretaries of State for Energy Security and Net Zero, for Science, Innovation and Technology, for Business and Trade, and for Culture, Media and Sport and the Transfer of Functions (National Security and Investment Act 2021 etc) Order 2023, article 1(2)". legislation.gov.uk. The National Archives. 1 October 2016. Retrieved 19 May 2023.
  31. ↑ "The Secretaries of State for Energy Security and Net Zero, for Science, Innovation and Technology, for Business and Trade, and for Culture, Media and Sport and the Transfer of Functions (National Security and Investment Act 2021 etc) Order 2023, article 2(1)". legislation.gov.uk. The National Archives. 1 October 2016. Retrieved 19 May 2023.


This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.