Friday 16 January 2015

Ed Davey calls for urgent North Sea oil review

The UK Government is calling for an urgent review of the North Sea oil and gas industry to identify key risks to production.

It comes in response to the collapse in global oil prices, which have led to BP and other companies to cut hundreds of jobs.

The energy giant’s UK arm recently announced it would get rid of 300 staff and contractor jobs from its North Sea operations.

Energy Secretary Ed Davey said he has asked Andy Samuel, new Oil and Gas Authority CEO to lead an “urgent commission” into the North Sea energy sector and come up with measures to mitigate the risks.

Britain's North Sea oil and gas sector employs more than 400,000 people and has generated more than $200 billion (£131bn) in tax revenue for the government.

Mr Davey added: “The oil and gas industry is used to volatile prices in world markets and will get through the latest downturn as it has in the past.

“However, given the huge value of the UKCS to the nation and the relatively high cost base that it has, I am concerned to make sure that it does so in the best possible shape for the future."

Mr Samuel is expected to present his findings to the government by the end of February.