Friday 13 March 2015

Oil & Gas UK response to Bank of Scotland report

Mike Tholen, Oil & Gas UK's economics director, said: “We note that many of the more positive aspects of the report relate to the desire of many companies to diversify and grow their export business given the current challenges facing their home market.  Whilst this reflects well on the quality of technology and expertise developed here in the UK, we need to sustain a critical mass of domestic activity to retain this valuable supply chain.

"Oil & Gas UK’s findings that investment in UK offshore oil and gas is due to fall by around one third this year, then by £3-4 billion per year in coming years, and that exploration has collapsed back to levels last seen in the 1970s, adds to the imperative to bring down the cost base, substantially reduce the tax burden and work closely with the Oil and Gas Authority to improve the stewardship of the UKCS.” Ends