The UK oil and gas industry’s economic outlook has revealed rising costs for the sector, prompting calls for the government to provide more tax incentives to retrieve £1 trillion investment and fully exploit the country’s declining offshore reserves.
Blue & Green Tomorrow is currently running a crowdfunder to ensure its survival. Please pledge.
The UK’s North Sea oil and gas sector could see a timid rebound after years of decline, according to a report by industry body Oil & Gas UK, but fresh government support is needed in order to exploit the remaining offshore reserves – about 24 billion barrels.
The sector is dealing with operating costs that are 60% higher than three years ago and falling oil prices. The report argues that more help from the government is needed to overcome current challenges and ensure the “long term future of the industry”. Proposed measures include addressing costs and a radical fiscal and regulatory reform.
Oil & Gas UK’s chief executive Malcolm Webb said, “Our industry has a crucial role to play in the future wellbeing of this country.
“However, to support a lasting and sustainable future, today we’re calling for greater collaboration – between governments, between government and industry and within industry itself to face and fight the challenges ahead.
The organisation’s economics director, Michael Tholen added the sector would benefit from “a lighter tax burden, a simpler and more predictable system of field allowances and fiscal support for exploration”.
The revenue of oil reserves in the North Sea was a central issue during the campaign of Scottish referendum. Oil tycoon Sir Ian Wood said that the reserves were greatly overestimated, claiming the industry would “be down to very low levels of production by 2050”.
The report follows an analysis from the International Energy Agency that forecasted massive growth for the solar industry bymid-century, suggesting the sector could soon surpass oil.
Photo: Berardo62 via flickr
Oil firms divided on possible impact of Scottish referendum
North Sea Oil sees investment dwindle under regulation change
Scottish independence: Sir Ian Wood warns on overestimated North Sea oil reserves
Budget 2014: Osborne freezes carbon price floor and boosts North Sea oil
Scotland to consider oil fund if voters say ‘yes’ to independence
Like our Facebook Page
How Cities In Canada Are Addressing Climate Change
10 Tax Incentives for Businesses That are Lowering their Carbon Footprint
How to Manage Anxieties About Climate Change
Green Brands Must Understand Their Customers to Market Wisely
Key Necessities for Starting an Eco-Friendly Freelance Business
6 Ways To Overcome Cash Flow Challenges as a Green Business
Going Cashless Lowers Our Carbon Footprint and Has Other Pros and Cons
How to Be as Eco-Friendly as Possible on a Trip to New York
Why Brazed Plate Heat Exchangers Are Eco-Friendly
6 Steps For Making Crypto & Blockchain Eco-Friendly
How To Use Solar Power Sustainably At Home
Building a Career in Green Construction: Tips and Insights
Solar-Powered Security Systems: Protecting Your Home and the Environment
Top 5 Benefits of Workplace Sustainability
The Role of Smart Technology in Managing EV Charging Stations
4 USA Vacation Destinations for an Eco-Friendly Trip
Why Internet Faxing Is A Sustainable Business Move
5 Ways Eco-Friendly Employers Can Boost Efficiency
6 Wastewater Management Tips to Reduce Water Pollution
What to Look for When Choosing an Eco-Friendly Locksmith
- Environment3 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment10 months ago
4 Countries That Have Banned Single-Use Plastic
- Features9 months ago
5 Huge Support Tips for Eco-friendly eCommerce Brands
- Environment7 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?