The head of Oil and Gas UK (OGUK) said today that North Sea industry is more competitive than it was two years ago, at the start of the crude price collapse.
But OGUK chief executive Deirdre Michie said the Treasury needs to keep supporting the sector.
Ms Michie was speaking following the publication of a report from PwC which suggested that confidence in the industry was growing.
She recently wrote to the Chancellor to ask for commitments in the Autumn Statement to boost investor confidence in exploration and production.
Today she reiterated the need for tweaks to the tax system to enable more trading of late-life assets.
Ms Michie said: “Despite facing unprecedented challenges over the past few years the UK oil and gas industry has demonstrated drive and determination.
“Its efforts to make operations more efficient achieved the first increase in production in 15 years and a 45% drop in the cost of doing business this year.
“However, there is still much work to be done and this will require the joint efforts of industry, governments, the Treasury and the Oil and Gas Authority.
“The most important issues facing our sector are the lack of exploration and little new capital investment.
“I have written to the Chancellor ahead of his Autumn Statement to ask for Treasury’s support to help increase asset trading. This could boost activity in the North Sea and adjustments to the tax regime could facilitate the trading of late-life assets.
“In addition, we need certainty in our fiscal regime by a recommitment to the Treasury’s ‘Driving Investment’ strategy for the sector and as part of the UK’s new industrial strategy, to recognise our supply chain as a key strength in the economy, with world leading capability – equally valued as aerospace or the automotive sectors, for example.
“The UK oil and gas industry is much more globally competitive than it was two years ago but we can’t underestimate the importance of government sending a strong signal of confidence and support.”
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