UK Government to Launch Review on Economic Benefits of Offshore Oil and Gas

The British Government announced the start of an independently-led review about the benefits of offshore oil and gas production on Monday.

“Although investment levels are rising strongly, the UKCS (UK Continental Shelf) is one of the most mature basins in the world and therefore faces unprecedented challenges,” said Secretary of State Edward Davey.

Britain was a net exporter of gas until 2004, but a 5% annual decline in output over the last few years has made it a net importer. The UK imports gas mainly from Norway and Qatar.

“Our offshore infrastructure is getting older, and we are seeing a decline in the rate of exploration and in the amount of oil and gas that is being recovered,” stated Davey in a note of the Government, explaining that the review is meant to maximise the economic benefits of offshore oil and gas production, for energy security, jobs, tax revenue and growth.

According to the Government, the UK’s oil and gas industry is a “key component of economic growth”, supporting 440,000 jobs across the country.

This review, led by Sir Ian Wood, is the first after more than 20 years.

“The interim conclusions from the review will be published in the autumn and the final report and recommendations in early 2014,” reads the note.