A senior voice within the offshore industry has said the ability to access the European single market with the “least friction possible” will be vital to efficient trade post-Brexit.
Oil and Gas UK’s Mike Tholen also emphasised the need for clarity of energy policy and industrial strategy moving forward.
The body’s upstream policy director was giving evidence to a Lords committee in Westminster yesterday.
He said the assumption was that some of the “rules of the game” would continue to apply.
But he added: “The stronger and clearer the signals on things like energy policy and on industrial strategy … the clearer the confidence of investment and the better not just for our own
industry but for many other industries which are trying to work out how to operate in a future uncertain environment.”
Labour peer Lord Dubs asked about the potential for practical problems should the UK leave the single market and whether there would be any opportunities for the industry.
Mr Tholen replied: “The ability to access the single market with the least friction possible – and it is for others to choose how that solution comes about – will be vital to make trading as efficient as it can be when we are clear to access these opportunities from the UK perspective.”
He also underlined the constrained times the industry is currently going through due to the low oil price.
In those circumstances, he said, companies had to take the competitive nature of a market into consideration.
Chris Hunt, director general of the UK Petroleum Industry Association, said he could not immediately see an opportunity of leaving the single market.
And he stressed the imposition of more red tape – over and above the current situation – would be an issue.
Mr Tholen said the EU had no direct remit on the precise activities of oil and gas extraction offshore but an impact in terms of environmental standards and the standards upheld within the energy market in Europe.
He insisted the ability – in a “very interrelated and complicated” energy market – to influence these post Brexit would be crucial.
Asked whether the UK’s expertise would help the country retain some clout, Mr Tholen replied: “I would like to think so but I think we need the clarity.”
He said the Norwegians enjoyed a “great degree of soft influence”, but added: “There is a large measure of frustration around the ability to influence the specifics.”
He also revealed some of the producing countries had expressed “private regret at least” that the UK would no longer be able to “speak as loudly” for the industry from the other side of the table.
Mr Hunt said the feedback he had heard was that the UK would be “sorely missed”.
Theresa May has repeatedly said she will not provide a “running commentary” on the Brexit negotiations
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