Oil and Gas UK chief executive Malcolm Webb said yesterday that “radical change” is needed if the UK is to maximise economic recovery from the North Sea.
And he warned that change needs to happen fast.
“Whilst current capital expenditure is at all-time high, exploration is in crisis, our cost base is increasing and average productivity levels have slumped,” he said.
“We simply cannot go on like this. We need radical improvement in regulation, in taxation and in the very way we conduct our operations if the UKCS is to be competitive again on the global stage – and let us not kid ourselves, right now we are not winning that competitive battle.”
“We need to act urgently because the penalty for indecision will be permanent loss of indigenous oil and gas resource and the jobs, the taxes and the security of energy supply which that yet to be recovered oil and gas can provide.”
Mr Webb also emphasised Oil & Gas UK’s neutral stance on the independence referendum, saying: “This is of course a hugely important matter – but it is one for the people of Scotland and their politicians to debate and decide.
“Our role as the industry trade association is to respect the democratic mandate which emerges from the vote on 18th September and then engage with and represent our industry within the political reality which then prevails.”
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