Governments should anticipate the industry’s reaction to political change to avoid negative investment, according to a leading energy industry professor.
Alex Kemp told Energy Voice the oil and gas industry is used to dealing with “political risk” and has learnt to respond to it accordingly.
With much discussion on what will happen to Scotland’s oil future if the country votes for independence next year, the Aberdeen University professor said it would not pose too much of a hurdle for the industry.
“It is a very live, current issue and worldwide the oil industry does get embroiled in political issues,” Kemp said.
“They [oil companies] are used to dealing with political risk – that is not to say they like political risk but then they have to consider how to adapt to that risky situation.”
The current political instability between Mozambique and Zanzibar over the revenues from newly found gas reserves on the countries’ borders is one example of such a situation, Kemp said.
Watch our interview with Alex Kemp below.
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