Whilst addressing an energy conference in Scotland, UK’s Chief Secretary to the Treasury Danny Alexander, said that a new oil and gas regulator will be based in Aberdeen, the traditional heart of Britain's oil and gas industry.
Foster collaboration and maximise oil and gas recovery
A result of long-term negotiations and discussions among government officials and oil and gas experts, the Oil & Gas Authority is being set up after recommendations by Sir Ian Wood as part of a strategic review published earlier this year, which identified the need for an agency with greater powers to foster collaboration and maximise recovery of oil and gas from the UK North Sea.
Chief Executive recruitment
Alexander said recruitment of the chief executive for the regulator will get underway shortly, with a job advertisement to be placed on the UK government's website on 19 June.
He also speculated the North Sea would need to face a lighter tax burden than it does now, so it can "continue to attract investment to extract full economic value in the face of increasing costs".
UK oil and gas sector
Oil remains important to the UK energy balance and contributed 37% of total energy consumption in 2013. Ageing reservoirs in the North Sea has meant production declines, making the UK increasingly reliant on imports of both crude oil and petroleum products. The UK became a net importer of petroleum products for the first time in 2013. New developments are coming onstream, for example Premier Oil’s Catcher field.
Edited from various sources by Cecilia Rehn
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