UK Launches New Strategy for Gas, Oil

The British government announced a comprehensive new gas and oil strategy on Thursday.

Business minister Vince Cable joined ministers responsible for energy in the Scottish city of Aberdeen, located close to many North Sea exploration rigs, to launch the strategy.

"UK oil and gas production is vital for energy security and to the economy, employing over 400,000 people," the strategy document noted.

 Last month trade body Oil & Gas UK said firms were planning investments totaling around €118 billion (£100bn) on the United Kingdom Continental Shelf (UKCS). The annual spend is expected to rise to a record £14 billion in 2013, from £11.4 billion in 2012.

Malcolm Webb, chief executive of Oil & Gas UK, said: "Record investment is forecast this year to search for and produce UK oil and gas reserves. This will be followed by an upturn in production from 2014, sustaining growth across the supply chain and reinforcing the industry’s already significant contribution to the UK economy.

The ministers also opened a new technology services office at Expro, an offshore specialist in Aberdeen. The company has created more than 150 new jobs in the UK over the past year. 

Tax certainty, supply chain support, and bridging skill gaps will provide continued growth, Cable, Energy Secretary Ed Davey and Scottish Secretary Michael Moore told business leaders in Aberdeen.

Meanwhile, the UK's junior energy minister, John Hayes, has been moved to another position in government. Hayes, who has clashed several times with his senior minister, a member of the environmentally-friendly Liberal Democrats, will become a member of the prime minister's personal team.

"Delighted John Hayes joining me as a senior parliamentary adviser -- and Michael Fallon adding a key energy role to his brief,” David Cameron said in a posting on his Twitter feed. Michael Fallon is a Conservative MP and businessman.

See also: UK Industry Group Predicts Energy Upswing