Oil & Gas UK and industry regulator the Oil and Gas Authority (OGA) have both welcomed the energy bill announced earlier today.
The Government introduced its energy bill which included a raft of new measures aimed at increasing energy security and boosting domestic oil and gas production, including giving the OGA the powers to create a robust, independent regulator and enable it to maximise the economic recovery of oil and gas from UK waters.
The Conservatives also want to see a change in the law which will remove the need for the Energy Secretary to approve large wind farms of more than 50 megawatts (MW) in England and Wales.
Andy Samuel, Chief Executive of the Oil and Gas Authority said:“We welcome the Energy Bill announced at today’s State Opening of Parliament, which will give the Oil and Gas Authority the powers it needs to become a robust, independent and effective regulator, and enable it to maximise the economic recovery of oil and gas from the UK Continental Shelf.
“We have moved quickly to establish the new regulator and continue to receive excellent support and engagement from government and industry. We are focused on delivering our early priorities and building our position as a trusted advisor and catalyst for change.”
Energy Minister Andrea Leadsom said the establishment of the OGA had been made in a bid to help support the industry and help maximise economic recovery.
Oil & Gas UK chief executive Deirdre Michie said:”We welcome the inclusion of an Energy Bill as part of the 2015–2016 parliamentary legislative session announced at the State Opening of Parliament today (Wednesday 27 May). This Bill will formally establish the Oil & Gas Authority (OGA) as an independent, government company (GovCo).
“The OGA is a critical catalyst for the work being done to sustain offshore activity.
“We look forward to receiving further details of this new legislation when the Bill is published, that will complete the implementation of Sir Ian Wood’s recommendations for MER UK – Maximising Economic Recovery from the UK continental shelf, in addition to providing the full set of tools and capabilities that the new regulator will need to do this job effectively and efficiently.
“We hope Government will bring forward this legislation as soon as possible.
“We are at a critical stage in the history of UK offshore oil and gas development and bold steps need to be taken now to ensure strong activity continues into the future.
“Oil & Gas UK is dedicated to continuing its engagement with the OGA and HM Treasury, forming a tripartite approach to maximising economic recovery of the UK’s substantial remaining oil and gas reserves, as recommended in the Wood Report and agreed by all major parties, bringing through the change that is so urgently required.
“The commissioning of the Wood Review and implementation of its recommendations, and the tax changes announced in the 2015 Budget, laid strong foundations for the regeneration of the UK North Sea. The focus of the industry now is to continue its hard work to increase efficiency and address its cost base.”
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