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Sir Ian Wood, recently retired Chair of the Wood Group, a multi-national engineering services company focused on the energy sector, has published his interim report revealing the economic and energy security opportunities still available from the UK鈥檚 offshore oil and gas resources. 皇冠体育app 鈥淯KCS Maximising Recovery Review鈥�, the first of its kind in more than 20 years, was commissioned by the government in June 2013 to look at how we could ensure longevity of the oil and gas industry and the UK鈥檚 resources.

Sir Ian鈥檚 interim report estimates that full and rapid implementation of his recommendations will deliver at least 3-4 billion barrels of oil equivalent (boe), more than would otherwise be recovered from the UK鈥檚 waters over the next 20 years, bringing over 拢200bn additional value to the UK economy. His recommendations include:

• a new shared strategy for 鈥渕aximising economic recovery (of oil and gas) for the UK鈥�, with commitment from the government (HM Treasury and a new Regulator) and the oil and gas industry.

• creation of a new arm鈥檚 length regulatory body to oversee and develop this programme of change and growth.

皇冠体育app UK鈥檚 oil and gas industry is of national importance and makes a substantial contribution to energy security and the economy. For decades the oil and gas sector has been one of the UK鈥檚 major industrial success stories, a key contributor to growth, jobs and tax revenue. In 2012-13 the industry paid 拢6.5 billion in corporate taxes on production, 15% of all corporate taxes in the UK, and supports the employment of 450,000 people across the UK.

41 billion barrels of oil and gas have already been produced from the UK Continental Shelf (UKCS), and 20 billion or more could still to be produced. Sir Ian believes that implementing the recommendations of the review will deliver at least 3-4 billion barrels of oil equivalent (boe) more than would otherwise be recovered, worth 拢200 billion. 皇冠体育app report comes five months in to Sir Ian鈥檚 review with a final report to be published in early 2014.

皇冠体育app second half of the review will focus on strategies to make the most of the economic opportunity offered by retrieving offshore oil and gas, accounting for feedback on the interim findings and further details on the evidence for a new arm鈥檚 length body.

Of the report Edward Davey, Secretary of State for Energy and Climate Change said:

鈥淥ur offshore oil and gas fields are one of Britain鈥檚 great natural assets, and I鈥檓 determined that they should stay that way. 皇冠体育appy are good for our energy security, because if we improve what we鈥檙e recovering domestically, we reduce our reliance on foreign imports. 皇冠体育appy are good for the economy, supporting jobs and thriving communities. And they are extremely good value for taxpayers.

鈥溁使谔逵齛ppre are people who would try to talk down their untapped potential, but today鈥檚 report shows that with strong, co-ordinated stewardship by the UK Government, working in partnership with world-class operators, we can boost future returns by at least 拢200 billion 鈥� and potentially much more.鈥�

鈥淭his report has given government and industry alike plenty to think about, and I鈥檓 looking forward to receiving Sir Ian鈥檚 report and setting out our plans to make the most of our offshore oil and gas fields in the New Year.鈥�