UK's global influence working for North Sea's future
Scotland Office Minister attends Oil and Gas event in Aberdeen.
皇冠体育app UK Government is able to combine its global influence and domestic policy to help secure the future of the UK鈥檚 oil and gas sector, David Mundell said today.
He was speaking ahead of a speech at an Xcite Energy Dinner in Aberdeen. 皇冠体育app firm鈥檚 primary focus is to bring the Bentley oil field into commercial production.
皇冠体育app Minister said the combination of innovate UK Government policy for the sector and the UK鈥檚 global influence was helping companies exploit opportunities and break down trade barriers, securing
He said:
鈥溁使谔逵齛pp UK Government wants to see more success stories in the North Sea, and that will require more companies that innovate and succeed.
鈥淎s a government we will continue to encourage and support companies and investment in the North Sea, and our commitment to the future of the oil and gas sector is stronger than ever.
鈥溁使谔逵齛ppre is no doubt that significant reserves of oil and gas remain under the North Sea. But as the industry knows and understands, volumes of reserves do not necessarily equate to profitable recovery nor to increasing revenues for the Exchequer.
鈥淚t is over simplistic to claim - as some try to do - that 鈥渢here鈥檚 a trillion barrels or more just waiting to be pumped ashore so don鈥檛 worry - the money will keep rolling in.
鈥溁使谔逵齛pp truth is that each barrel gets more expensive to extract. 皇冠体育app profits get more marginal. 皇冠体育appre will still be large fluctuations in commodity prices.鈥�
鈥淲e have listened closely to the industry to help maximise recovery of our resources. Our recent Oil & Gas sector strategy demonstrates our long-term commitment and funding to the oil and gas industry, here in Scotland and across the UK. It will help ensure we identify the measures that will benefit business, large, medium or small.
鈥淲e are providing the right conditions to make the UK a commercially attractive choice for companies to come here and sustain production 鈥� with a system of incentives and tax reliefs worth billions of pounds to keep the North Sea producing oil and gas for the longest possible period.鈥�
Earlier this week, the UK Government announced the start of an independently led review, which will look at how to maximise the economic benefits of offshore oil and gas production. 皇冠体育app review will be led by Sir Ian Wood. He will undertake a full analysis, and work with industry leaders, as well as Government, to make recommendations for improving the future economic recovery of UKCS oil and gas. It is the first time for more than 20 years that such a review has been conducted.
On Monday, European Ministers agreed a Directive on Offshore safety. 皇冠体育app European Commission鈥檚 original proposal was for a regulation which would have been unnecessarily prescriptive, disruptive and costly to implement. 皇冠体育app UK Government has been active in lobbying and negotiating on this issue which has seen major outstanding issues resolved.
Extracts from David Mundell鈥檚 speech 鈥� Xcite Energy Dinner, Aberdeen 13 June
鈥溁使谔逵齛pp UK Government believes that it is imperative that we continue to encourage investment in the UK Continental Shelf. In 2012, the industry invested 拢11.4 billion capital in the UKCS, the highest in more than 3 decades.
鈥淔or the United Kingdom, the Oil and Gas Industry is a vitally important strategic resource 鈥� as a contribution to the UK鈥檚 energy security 鈥� but also as a source of jobs and revenue.
鈥溁使谔逵齛pp United Kingdom can deliver the help required to the Oil and Gas industry over a sustained period to get the most out of the North Sea.
鈥淲e can absorb short-term costs for long-term gains; create certainty; and encourage billions of pounds of vital new private sector investment.
鈥淎nd the clout of United Kingdom can ensure that EU wide regulation is not costly or burdensome.
鈥淲orking in partnership, we can ensure the maximum extraction, over the longest period, to the benefit of Scotland and all of the United Kingdom.
鈥淣orth Sea oil and gas contributes significantly to the supply of our primary energy, and still produces the majority of the UK鈥檚 oil and gas needs.
鈥溁使谔逵齛pp primary products of your Industry 鈥� the oil and gas itself 鈥� will remain an integral part of the UK energy mix for decades to come.
鈥溁使谔逵齛pp UK Government is firmly committed to using our global influence to help companies exploit opportunities and break down trade barriers.
鈥淓xploiting these global markets can safeguard jobs and stimulate growth for the oil and gas supply chain in Aberdeen and rest of the UK.鈥�