Tuesday 29 November 2005

Oil and Gas Producers Welcome Energy Policy Review but Trust the Chancellor will not Prejudge the Outcome

The UK Offshore Operators Association (UKOOA) welcomes the governments announcement today of the Energy Policy Review as an opportunity to recognise the proper place of oil and gas in the nations energy mix.

Government forecasts show that by 2020 the UKs dependence on oil and gas will have increased, yet the 2003 Energy White Paper and the annual reviews of that document have paid scant regard to the pivotal role of the UK oil and industry in assuring security of energy supply for the nation.

Malcolm Webb, UKOOA's Chief Executive, said, "UKOOA welcomes this review and will give it its full and active support.  It gives us the chance to put right some of the omissions of the last White Paper and gain proper acknowledgement of the position our domestic oil and gas industry holds as a crucial contributor to the security of UK energy supply.   Future energy policy must address the need for the right investment climate to allow UK oil and gas companies to maximise domestic production.

"We are delighted that the Review is to be led by the Energy Minister, Malcolm Wicks, who is the first minister for some time to be entirely dedicated to energy, and who has a good track record in supporting successful and productive co-operation between industry and government in his role as chair of the PILOT forum.

Mr Webb continued, "It is also very important however that the Chancellor of the Exchequer does not now discourage investment to the UKs oil and gas industry or otherwise pre-empt or distort the outcome of the Energy Policy Review through announcing any proposed changes to the North Sea tax regime in Mondays Pre-Budget Report. That, to say the very least, would be to put the cart entirely before the horse".

Note to Editors

• The UK Offshore Operators Association (UKOOA) is the representative organisation for oil and gas companies licensed by the UK government to explore for and produce hydrocarbons offshore around the British Isles.  It has 34 members.

For more information, please call 020 7802 2400.