The UK’s offshore energy industry trade body, Offshore Energies UK (OEUK), has stressed the importance of a policy reset for the North Sea oil and gas arena for the UK government to secure billions in energy investment and reduce the country’s reliance on imports.
Calls have been growing to abolish the Energy Profit Tax (EPL) to pave the way for this Financial system Which supports responsible domestic production of oil and gas, opens the doors to investment, and ensures a fair return to the treasury when prices are high. According to the OEUK CEO, an early visit by the Prime Minister Andy Burnham The meeting of North Sea energy operators and their workforces could mark a crucial turning point in the government’s attitudes to domestic energy and the future of the offshore industry.
David WhitehouseCEO of Offshore Energies UK commented: “The UK will continue to need oil and gas for decades to come. The question is whether we produce as much of this energy as possible here – to support our jobs, our communities and our economy – or rely increasingly on imports as investment and economic value are exported abroad. Government policy should support North Sea production as part of a safe and managed energy transition.
“Energy policy cannot be set at Westminster alone without listening to the people and communities who have supplied this country with energy over the past 50 years. For too long, workers, engineers, technicians and offshore workers across the energy supply chain have been talked about rather than listened to. The visit to meet the North Sea workforce will demonstrate that the new government intends to build a different relationship with the people and communities at the heart of Britain’s energy system.”
As a result, OEUK has requested an urgent visit by the Prime Minister to operators in Scotland and supply chains in the north-east of England, arguing that energy production must be stimulated before reliance on imported oil and gas increases.
Offshore Energies UK insists the choice is not between oil, gas and clean energy, but whether the country can produce the energy it needs with its own workers and supply chains or import more from abroad at higher costs and emissions.
The White House confirmed: “The new Prime Minister must now turn listening into action. Words of support for projects like Jackdaw and Rosebank cannot be a substitute for the policy reset our country needs.
“The new government must support North Sea oil and gas on its increasing reliance on imports – and implement the financial and regulatory reforms required to unlock investment, protect local jobs, enhance energy security and support the energy transition.”
OEUK highlights that the use of liquefied natural gas imported from America or Qatar, which is increasingly used to replace North Sea gas, has carbon emissions four times higher.
The UK trade body for the offshore energy industry states that its analysis shows that a reset to address reform of the regulatory and tax framework for the North Sea industry, including the early implementation of the Government’s proposed Oil and Gas Price Mechanism (OGPM), could unleash £50 billion ($67-68 billion) In investing in oil and gas.
Offshore Energies UK also confirms that over the next decade alone, this will increase capital investment by £26 billion ($35-36 billion) and increase tax revenues by more than £13 billion ($17.5-18 billion), support tens of thousands of jobs, and help the country meet at least half of its oil and gas needs from domestic production between now and 2050.
In addition, faster reform could reduce the share of imported LNG in the UK’s gas supply to 6% by 2035, compared to 46% without reform. Independent poll data conducted by Opinium earlier this month confirmed that government supporters were looking forward to a reset of energy policy by the new prime minister.
Labor voters favor scrapping the ban on exploration and taking Norway’s pragmatic approach to new licenses by 42% to 35%, with nearly 70% of these voters saying the UK should prioritize oil and gas production in the North Sea compared to just 9% who said it does not matter where oil and gas comes from.
This means that more than seven in ten people believe that Britain should produce oil and gas in its own waters rather than rely on imports from abroad.
The White House noted: “This compelling new data shows that the British people are looking forward to a massive change in energy policy from the new Prime Minister. The decline in domestic oil and gas production in the North Sea has increased the UK’s exposure to imports and geopolitical risks. Voters have had enough.
“All segments of the UK population are looking for change from Andy Burnham, including the government’s core supporters. Nearly 70% of Labor voters said the UK should continue to produce oil and gas in the North Sea rather than rely on imports compared to just 9% who said it doesn’t matter where it comes from.”
Boost your brand with marine energy ⤵️
Steal the spotlight and establish your brand in the heart of the outside world!
Join us to make a greater impact and grow your presence at the core of the marine energy community!
