Optimism in the North oil and gas industry continued to grow yesterday on the back of a record-breaking licensing round for offshore drilling – but one expert struck a note of caution.
Thousands of new energy jobs could be created after the UK Government said on Tuesday it had received 224 applications for 418 offshore blocks. The total is the biggest since offshore licensing began in 1964 and 37 more than the previous high in the last round in 2010.
Eddie Leigh, managing director at corporate-finance adviser Simmons and Company International, said: “The latest licensing round has certainly resulted in an impressive number of applications. However, the real challenge is to ensure that a material number of these are turned into successful producing assets.
“This, along with the hard work that the industry is putting into extending and enhancing production in existing assets, will be critical in arresting the recent decline in UK oil and gas production.
“All of this requires enormous amounts of financial, intellectual and technological capital to be deployed and it is essential that the oil industry is afforded a clear and stable environment in which to deliver these long-term projects and help boost the wider UK economy.”
Bob Collier, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “This is confirmation of the optimism which came forward in the chamber’s 16th oil and gas survey published this month.
“The oil and gas sector has helped ensure Aberdeen city and shire has remained largely sheltered from the current economic downturn facing the rest of the UK. This looks set to continue and its importance to the region cannot be underestimated.” The SNP also welcomed the licensing round announcement.