Tom Greatrex MP, Labour’s Shadow Energy Minister, has made the following comment on the publication of Oil & Gas UK’s 2014 Activity Survey:
“Oil & Gas UK’s authoritative activity survey makes clear that the UK Continental Shelf demands greater investment for diminishing returns – operational spending has increased 16%, with production down 8%. North sea oil is, by record, volatile and, by definition, declining.
“As Sir Ian Wood’s final report makes clear, maximising the precious resources of the North Sea requires greater coordination and closer collaboration between industry, regulators and government. By leaving the UK, the SNP would risk fragmenting the UK fiscal and regulatory regimes, which are so vital to securing the investment that provides jobs in Scotland and further afield.
“The Oil & Gas UK survey also notes that this year the industry has shelved plans to extract 0.4 billion barrels of oil equivalent due to increasing concerns about profitability – highlighting how marginal the North Sea can be and why resources, risk and revenues are best managed by pooling and sharing across the UK.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/exploration/25022014/labour_energy_minister_comments_on_uk_oil_and_gas_survey/