Foreword

The concept of Sustainability allows us, as a society, to conduct a debate and make decisions for society whilst recognising what future generations may require and expect. It allows us to have a debate, often based on value judgements, on the balancing of the social, environmental and economic benefits and dis-benefits of any given course of action.

UKOOA is the representative organisation for the leading companies in the UK offshore oil and gas industry. Our members are licensed by the UK government to explore for and produce oil and gas in UK waters.

The role of oil and gas in sustaining our society is pivotal. The benefits that they bring to the UK are legion and, whilst no extractive industry can be ultimately sustainable in itself, it can help to sustain our economy and lifestyles which, ultimately, can allow a move to alternative energy forms that future generations will need.

• The economic benefits are transparent. £203 billion has been contributed in tax to government since the mid 1960s (enough to build and equip over 6000 new hospitals). £5.2 billion was paid in 2004/05 alone and estimates go as high as £10 billion more in this tax year. Balance of trade defi cit would be £30 billion higher without UK oil and gas this year.


• The social benefits flow from the £220 billion of capital expenditure to date, the spending of over £9 billion in total this year alone, and the 260,000 high quality, well paid jobs that it supports. These benefi ts flow from Aberdeen, East Anglia and Newcastle through Scotland's central belt, Merseyside, London and nationwide. The highly skilled workforce and cutting edge technologies have the potential to benefit our society for decades to come by winning contracts abroad and developing alternative energy sources at home.


• The UK's environment and contribution to meeting its international targets have also benefited as the switch to gas has helped UK to meet its Kyoto target of a 12.5% reduction in green house gases since 1990. The target for C02 is more challenging, but carbon capture and storage (CCS) may yet be employed in the North Sea if legal, technical, regulatory and economic challenges are overcome. If CCS proves to be viable, it could extend the life of the UK's oil and gas industry, develop a new industry and help manage the nation's CO2 emissions at the same time.

Good stewardship of our natural resources is an essential national goal for all stakeholders in our industry. Regulators, government and the whole industry have a responsibility to make sure that we make the most of them.

The strategy and reports that follow are designed to demonstrate that we are taking that responsibility seriously. Challenges remain; our safety record is one that we can be proud of when set against other industries, but we have yet to reach our goal of being the best region in the world; our care for the environment is vital to us and, whilst there is no evidence that our presence off UK coasts creates any lasting harm, we have environmental management systems in place and the results of our efforts to reduce emission and discharges in challenging circumstances are reported here; we still need to attract more skilled individuals to our industry, if we are to maximise the benefits available to us all.

The challenge posed by how we use our fossil fuels is one that all of society must face together.

We hope that what follows in these pages will assure you that we take our responsibilities seriously whilst making a massive contribution to our society. We would welcome your thoughts and comments on this report.

Malcolm Webb Chief Executive	Chris Allen HSSE Executive	Paul Dymond Operations Director	Steve Harris Communications Director	Mike Tholen Economics Director