The International Association of Oil & Gas Producers (OGP) has urged European energy ministers to support the critical role the industry plays in underpinning Europe’s energy security and economic wellbeing.

Writing to ministers before their 19th September meeting in Vilnius where they will discuss future climate and energy policies, OGP EU Affairs Director Roland Festor stressed that domestic production of oil and gas is a vital ingredient for Europe’s security of energy supply and competitiveness.

“It is essential to keep in mind the positive story about the oil and gas sector, when thinking about future energy and climate policy at a time of economic uncertainty,” said Mr. Festor. “The industry’s positive contributions must be preserved and encouraged,” he added.

In Europe, the oil & gas industry contributes billions of euros to national and regional government budgets through taxation and royalty payments. It provides highly skilled employment and consistently develops innovative solutions to maximize production and improve safety. It is key to the EU’s energy security and therefore to its future prosperity.

Key points

Mr. Festor offered ministers a few important points to consider when discussing the shape of the European Union’s climate and energy policy to 2030.

First of all, the EU should set a single, realistic greenhouse gas target for 2030. This target should take into account sound science and progress in international negotiations and it should reflect existing and future commitments by major trading partners.

Second, the Emissions Trading System (ETS) should remain the central mechanism for CO2 emission reductions for electricity and industrial sectors. Its future role should be clarified.

Third, all energy sources, including renewables, should be integrated into the market and allowed to compete, without subsidies.

What is even more important is the role of natural gas. It ideally complements the intermittency of renewable energy sources. It is also reliable and immediately available to help the EU meet emission reduction targets cost-effectively.

Natural gas from shale is therefore an opportunity for Member States, and one which needs to be explored. It could limit CO2 emissions while further diversifying supply sources and stimulating growth and jobs.

About OGP:

OGP’s members include most of the world’s leading publicly-traded, private and state-owned oil & gas companies, oil & gas associations and major upstream service companies. OGP members produce more than half the world’s oil and about one third of its gas.

OGP represents the upstream oil and gas industry before international regulators and legislators. From its headquarters in London, OGP represents the industry in such United Nations bodies as the International Maritime Organization and the Commission for Sustainable Development. OGP also works with the World Bank and with the International Organization for Standardization (ISO). It is also accredited to a range of regional bodies that include OSPAR, the Helsinki Commission and the Barcelona Convention.

OGP Brussels provides an essential conduit for advocacy and debate between the upstream industry and the European Union (EU). This involves regular contact with the European Commission and the European Parliament.

OGP also helps members achieve continuous improvements in safety, health and environmental performance and in the engineering and operation of upstream ventures. OGP’s extensive international membership brings with it a wealth of know-how, data and experience. OGP committees and task forces manage the exchange and dissemination of this knowledge through publications and events around the world.