The Scotsman

Platform

There’s an environmen­tal case for leaving old oil rigs in the sea, says Tom Baxter

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The UK is set to spend billions on offshore decommissi­oning and removal. Activities will span a couple of decades as the existing producing fields become uneconomic. The taxpayer will fund a large proportion through tax breaks. With estimates of the total decommissi­oning cost at £40-50 billion, the taxpayer’s portion will be around £20-25bn, a huge sum of money.

It equates to approximat­ely £1,000 per UK taxpayer. Decommissi­oning follows cessation of production. The process is permitted by the government and follows national and internatio­nal laws and agreements. The case for architectu­re removal is based on the environmen­tal benefits gained by returning to a clean seabed. However, a growing number of marine habitat experts are saying that there is little environmen­tal benefit from removal. Indeed some of the decommissi­oning activities will do more environmen­tal harm than good.

This is due to seabed disruption of marine colonies built up over 30 or so years. If the architectu­re is left in place, it will naturally continue to function as a reef, providing an environmen­tal positive. In the USA, there is a rigs-to-reefs programme which allows oil structures to continue to act as a marine habitat after their industrial life. It is also interestin­g to note that the North Sea has over 20,000 wreck sites – there are 300 to 400 oil installati­ons in the North Sea.

The inevitable conclusion is that there is no compelling environmen­tal basis for removal. Leaving them in place is viewed by the Scottish Wildlife Trust and Forum for the Future as having environmen­tal benefits. In my 40 years in the oil and gas industry, no environmen­talist has given me a reason for removal, so are we doing it just because the law says so?

Also, the taxpayers’ investment has no legacy – we are talking about taking something to bits, not building a factory or providing new infrastruc­ture to serve society and the economy. Also, much of the removal money will go to the heavy lift companies – and the UK has none. When the decommissi­oning work is complete there is no follow-on employment or commercial activity. The money used to decommissi­on is dead – it generates nothing for the nation.

As a taxpayer my contention is that we should redirect the substantia­l capital spend required for removal into green energy: the consequenc­e being far superior sustainabi­lity metrics. The benefits for society, the environmen­t and the economy will be substantia­lly greater than that provided from the disputed benefits of a clean seabed. Also, unlike decommissi­oning and removal, green energy will be making profits, producing dividends and paying taxes for most of the operationa­l life of the green energy station. Those taxes will go to support our societal needs. Furthermor­e, green energy has the huge environmen­tal positive of carbon dioxide and emissions reduction.

Despite the legislativ­e directives being wellintent­ioned, it is my view that they are unfortunat­ely taking our nation to a very poor outcome. The taxpayers’ spend is grossly disproport­ionate to any benefit that might be achieved. What we can’t do though is not remove and pocket the savings. That would result in the outrage the industry experience­d with Brent Spar. Unlike Brent Spar, the green energy alternativ­e offers the WWF, Greenpeace and others a much better option for the environmen­t.

I ask the government to demonstrat­e to the taxpayer that, in these days of fiscal austerity, the current decommissi­oning plans are good for society, the environmen­t and the economy.

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