Oil & Gas UK boss meets Alexander and Davey in Aberdeen

Today, March 20, Oil & Gas UK has welcomed Chief Secretary to the Treasury, Danny Alexander MP, and his colleague Secretary of State for Energy, Edward Davey MP, to Aberdeen.

Industry has been clear on the challenge it faces in three significant areas – fiscal, regulatory and cost, Oil & Gas UK said.

Wednesday’s (March 18) Budget announcement laid strong foundations for the regeneration of the UK North Sea and the sector looks forward to hearing further details in the days to come, Oil & Gas UK noted. Furthermore, to ensure success for decades ahead, this must be accompanied by substantial industry efforts to improve its cost base and the regulatory improvements to provide more robust stewardship.

Speaking from Aberdeen today, Oil & Gas UK chief executive Malcolm Webb said:

“We are pleased to see progress continuing on the implementation of Sir Ian Wood’s game-changing report with the publication of the Government’s response to the call for evidence action last month.  It is absolutely critical that the cross party consensus around the need for swift change and progress for the OGA continues.

“Oil & Gas UK will continue to play its part to assist industry in taking the lead to maximise economic recovery from the UK Continental Shelf (UKCS).”

Commenting on the new Investment Allowance, Malcolm Webb, added:

“The new basin-wide oil and gas Investment Allowance will, we hope send a clear signal that the UKCS is a viable prospect for investors and boost exploration, provided cost and efficiency issues are addressed. Stability and predictability are the key for our industry. Key for the continuing support of hundreds of thousands of jobs here in Scotland and across the UK and key to ensuring this country has a secure indigenous energy supply for the future.” 

Malcolm Webb concluded:

“I’d like to take this opportunity to thank Danny Alexander, Edward Davey and Exchequer Secretary to the Treasury Priti Patel for their tenacity in ensuring measures to support this sector were delivered by Government within tight time constraints. In addition, of course, to Chancellor George Osborne for his far-sighted vision for our industry in the Budget.

“I believe this is a good example of how Government, regulator and industry can collaborate for the benefit of all parties – a culture which I believe Andy Samuel will strengthen through his leadership of the new Oil and Gas Authority (OGA).”

Image: Oil & Gas UK