Offshore oil and gas infrastructure electrification and offshore wind: a legal exploration

Abstract

The oil and gas and renewable energy sectors are increasingly coming together as traditional hydrocarbon producers are exploring the large-scale integration of renewables in fossil-fuel projects. One option is the electrification of oil and gas production platforms in the offshore environment utilizing offshore wind energy to power the asset’s operations. This article assesses the rationale for such a shift as well as regulatory avenues and barriers to the electrification of offshore oil and gas assets through offshore wind energy technology. While the article’s explorations are of a general conceptual nature, this article studies existing and planned developments in Norway and Atlantic Canada.

This article discusses key factors to determine the legal nature of different electrification project models and proposes solutions to identify the likely legislative and regulatory regime(s) which will govern. The article concludes that reforms for a forward-thinking legal and regulatory environment for the offshore space will have to re-examine the role of existing (platform) and new (wind but also oil and gas) offshore infrastructure and the associated regime that applies to these projects. Currently, in the Norwegian and Canadian contexts, these discussions are somewhat exploratory. They do, however, underline the importance of planning the co-development of offshore wind energy projects with existing and future oil and gas projects and to highlight the need for greater clarity in the evolving design of legal and regulatory frameworks to support the future of the global offshore energy sector.