Oil & Gas UK has welcomed the formal launch of a consultation on a Strategy to Maximise the Economic Recovery of the North Sea (MER UK) which defines how the new Oil and Gas Authority will work with industry and across Government to deliver maximum value from Britain’s offshore oil and gas resource.
It also welcomed Energy and Climate Change Secretary Amber Rudd’s Wednesday announcement of an energy policy with energy security at its heart, with gas playing a central role in future power generation.
Oil & Gas UK notes also that the Government and industry regulator’s commitment to Maximising Economic Recovery from the UK Continental Shelf (MER UK) is consistent with a programme of progressive decarbonisation, and meeting all targets and international obligations, as the basin matures.
Oil & Gas UK’s chief executive Deirdre Michie said: “The Maximising Economic Recovery (MER) UK strategy will form the cornerstone of the tripartite approach being taken by the new Oil and Gas Authority, HM Treasury and the industry to extraction of the UK’s oil and gas resources.
“The Secretary of State for Energy stated that energy security has to be the number one priority and that gas will play a key role in powering our future economy. It makes sense therefore to make the most of the country’s own resources and the MER UK strategy, in tandem with the creation of the new Oil and Gas Authority, is designed to do just that. There are up to an estimated 20 billion barrels of oil and gas to be recovered from our offshore waters, around eight billion barrels of that is natural gas.
“In addition, the carbon footprint of UK production is somewhat lower than many imported sources. Therefore, the UK is not undermining or jeopardising its carbon targets if we produce rather than import the gas this country needs.
“The Government’s commitment given today to help provide the right business environment for its recovery sends the right signals to investors in Britain’s oil and gas industry and will help foster technology innovation and preserve hundreds of thousands of highly skilled jobs in the supply chain across the country, as well as contributing to energy security of supply.
“We look forward to engaging fully with industry and Government on the Strategy consultation.”