…Finding & producing oil & gas

– some basic facts

International Association of Oil & Gas Producers

Offshore wind energy

What is the potential of
offshore wind energy?
The EU’s 2008 Renewable Energy Direc-
tive calls for a binding 20% renewable
energy target by 2020. To help meet this
target, wind energy capacity in the EU is
growing fast. According to the European
Wind Energy Association (EWEA), it
increased from 17 gigawatts (GW)
in 2001 to 65 GW today - enough
to power approximately 17% of EU
households.
This growth is expected to continue, both
onshore and offshore, creating numerous
interactions with other industries, includ-
ing oil and gas.
Over 98% of this capacity growth has
been onshore with the majority installed
in Germany and Spain. Offshore
generation is still an immature market,
largely because costs are significantly
higher than on land.
Denmark and the United Kingdom are
leading in offshore installations. Together
they account for 68% of Europe’s in-
stalled offshore capacity.
What are the implications for the
EU’s oil and gas production?
While offshore wind energy is growing,
fossil fuels will remain a mainstay of
energy supply for decades to come. In
2030, fossil fuels will supply over 70%
of European energy demand. During the
same period, European Economic Area
(EEA) production is projected to cover,
respectively, some 13% of oil and 37%
of gas EEA consumption.
Over 90% of oil and gas produced
in Europe is located offshore. For
optimal use of the sea alongside optimal
development of all indigenous resources,
it is essential to recognise potential areas
of conflicts and identify means to co-exist
harmoniously.
The oil & gas industry has done this for
decades with fishing and shipping, and
can do this with wind.
What are the areas of concerns?
Ill-thought development of offshore
wind could reduce rights of access to
the seabed for other marine users. This
access is fundamental for oil and gas
exploration and production activities
such as seismic surveying and drilling.
Access is also needed to extend the
lifetime of oil and gas developments
for storage of CO2 and/or the storage
of natural gas in depleted oil and gas
fields.
Safety is a prime consideration. The
development of wind farms could, in
some areas, introduce real operational
hazards to offshore exploration and
production, particularly in relation to
helicopter and vessel operations. The
proximity of wind turbines might inter-
fere with radar signals and/or force
helicopters to alter their flight paths or
their rate of descent. This would pose
significant risks in emergencies or in
poor weather conditions.
Hywind, Statoil
What is the potential
for co-operation?
Offshore oil and gas operations and wind
power can co-exist in terms of innova-
tion, technological development and
knowledge sharing. For example, Statoil
has recently built Hywind, the world’s first
full-scale floating turbine, using North Sea
oil technology.
Eventually, oil and gas platforms and wind
turbines could even be interconnected to
help balance irregularities and intermitten-
cies in wind generated electricity.
Natural gas is a key fuel to support the
development of offshore wind energy.
The flexible operating capabilities of
gas-fired power stations will increasingly
be required to back up intermittent wind
generation, thereby minimizing risk to
future electricity supply security.
A rational development of offshore wind
energy that is compatible with safe
and secure energy supply is essential.
Therefore, the development of offshore
wind energy should be accompanied by
sound maritime legislation that recognises
the need for both energy sources and lays
the groundwork for their co-existence and
co-operation.

About OGP

O GP represents the upstream oil & gas industry before international organisations including the International Maritime Organisation, the United
Nations Environment Programme (UNEP), Regional Seas Conventions and other groups under the UN umbrella. At the regional level, OGP is
the industry representative to the European Commission and Parliament and the OSPAR Commission for the North East Atlantic. Equally important is
OGP’s role in promulgating best practices, particularly in the areas of health, safety, the environment and social responsibility.

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