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Uk Offshore Oil And Gas Industry’s Response To The Budget

Tuesday 9 March 1999

Uk Offshore Oil And Gas Industry’s Response To The Budget

The UK Offshore Operators Association (UKOOA), the representative organisation for the UK offshore oil and gas industry, is disappointed that the Chancellor has missed an opportunity to recognise and respond to the depth of the difficulties currently facing the UK offshore oil and gas industry.

Urgent measures are needed to halt the erosion of the UK oil and gas sector s international competitiveness in the face of the oil price collapse over the last 12 months, said James May, Director-General of UKOOA. In world-wide oil industry terms the North Sea is a high cost province. The Chancellors decision not to address the North Sea taxation issues is a missed opportunity, and one that will lead, I fear, to further decline in exploration and development activity and job losses.

Todays announcement makes the work of the Government Oil and Gas Industry Task Force all the more compelling if the cost of producing a barrel of North Sea oil is to be driven down and the long term future of some 350,000 jobs is to be protected.

Energy/Carbon Tax

Reduced emissions and improved energy efficiency are issues on which the UK Oil and Gas industry has already made significant progress.

The switch from coal to gas as a fuel for power generation has put Britain on target to meet its international commitments. A successful UK Offshore industry is vital if we are to sustain this progress.

We have played a constructive and proactive role in improving energy efficiency. We will continue to do so and look forward to seeing the Governments proposals. It is important for both the Industry and the economy of the UK that our competitiveness is not threatened.

Note to Editors:

1. UK Offshore Operators Association (UKOOA) is the representative organisation for the UK offshore oil and gas industry. Its 32 members are companies licensed by Government to explore for and produce oil and gas in UK waters.

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