There is reason for optimism in the oil and gas industry, if the sector is carefully managed – according to the upstream policy director at Oil and Gas UK.
Mike Tholen outlined the importance of both government and industry figures making the right decisions for the future of the sector, while endorsing his group’s blueprint for government and ‘Vision 2035’ which sets out a positive vision for the next two decades in the North Sea.
He said that taking the opportunities which may be presented to the sector “will be essential to deliver the vision in the years to come.”
He added: “We will get more efficient, we will get better and hopefully we will get more focussed on exploration.”
Among the actions recommended were to ensure the United Kingdom Continental Shelf (UKCS) remains competitive compared to basins around the world and to work to increase exports.
Research by Oil and Gas UK has found that increasing exports and extending the life of the UKCS could create an extra £290 billion in revenue from the North Sea.
But Mr Tholen also identified some challenges for the oil and gas sector.
These included the cost of production, pressure to cut carbon emissions and competition from alternative energy sources.
He said: “There are new competitors out there, there are new forms of energy out there.
“Those alternative energy sources will nip at our heels.”
“Our energy industry has to move from high carbon to low carbon as part of that future.”
He made the comments during a speech at the Oil and Gas UK (OGUK) Conference in Aberdeen today.
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