UK and Scottish ministers will hold crisis talks with oil and gas chiefs today amid alarm at falling prices.
The spotlight will fall on the crunch meeting of the Pilot taskforce as Treasury chiefs face growing demands for government action to resuscitate the sector.
Energy Secretary Ed Davey will chair the meeting before travelling to Aberdeen on Thursday to hold further talks with key industry figures.
The meeting today will be attended by trade body Oil and Gas UK, and representatives from more than a dozen major offshore companies.
In a stark warning on the eve of the talks, Oil and Gas UK chief executive Malcolm Webb said: “Evidence of the threat from the falling oil price to UK investment and jobs is mounting daily with oil and gas companies cutting exploration and capital budgets and reviewing headcounts.
“The Treasury’s promise in last year’s Autumn Statement of a simplified tax allowance to encourage new investment must be delivered by Budget 2015 if it is to have any impact.
“However, with the continued falling and potentially sustained low oil price, this is no longer enough.”
Mr Webb insisted the “credible and reasonable” response from Chancellor George Osborne would be the abolition of the 30% supplementary charge on corporation tax.
Producers would still pay corporation tax at 30% under the plan.
Scottish Energy Secretary Fergus Ewing, who is also due to take part in today’s talks, also called for Treasury action.
The SNP minister said: “The oil and gas industry is a strong success story for Scotland and will continue to be.
“However, because of the mismanagement of oil and gas fiscal policy by the UK Government, challenges remain and we must tackle the ongoing cost pressures and the fall in oil prices head on.
“Last week the Scottish Government published a new report setting out a range of taxation changes and we will now consult closely with industry on these proposals.
“Today I will reiterate our call for urgent reform to the UK energy minister, and set out the detail of our plans to industry leaders.”
Recommended for you
