North Sea Oil and Gas Industry Pleads for Support
North Sea oil and gas industry leaders have called on Philip Hammond to act urgently to help reverse the potentially disastrous slump in activity in the area triggered by the crude price slump.
Oil & Gas UK said the Chancellor could use his Autumn Statement later this month to provide a vital spur for the North Sea where billions of barrels reserves may be left undeveloped unless investment increases.
The chief executive of the trade body, Deirdre Michie, warned: “Exploration and development drilling has fallen to record lows and industry figures reveal a drought of new investment approved in 2016 and 2017 looks no better.”
Oil & Gas UK has forecast the downturn will cost around 120,000 jobs by the end of this year.
The organisation said Mr Hammond could encourage new entrants to buy North Sea assets by confirming they will be able to claim tax relief on the cost of decommissioning fields when they run dry.
While there may be around 20 billion barrels to be recovered from the North Sea, many fields are controlled by firms with no plans to develop them.
Oil & Gas UK wants firms to get tax breaks to encourage them to increase output from producing fields.
The Government should re-affirm its commitment to having a more competitive and predictable tax regime.
Ministers must help raise awareness of the capability of the supply chain at home and overseas.
Source: Herald Scotland
