Proposals for greatly enhanced stewardship in next phase of UKCS to maximise oil and gas recovery.
I am pleased to publish my Interim Report today (11 Nov).
Since Ed Davey, Secretary of State for Energy and Climate Change, asked me in June to lead a review of UK offshore oil and gas recovery, I have taken evidence from a large number of interested parties. I would like to express my gratitude to all those who have contributed, from both government and industry. My first comment is that Ed Davey was absolutely right to commission this review at such a pivotal time as we move into the next phase of the UKCS.
I have taken evidence from 40 active players in the oil and gas industry representing more than 95% of UKCS production, key government figures, and regulators from neighbouring regimes such as Norway and the Netherlands. The evidence I have received has been consistent and clear. The UKCS is facing a new set of challenges, which are not insurmountable, but will become more difficult to address if we do not act quickly. We must strengthen the capacity and capability of our stewardship regime to significantly enhance collaboration across the UKCS if we are to meet the demands of maturity and diversity, and maximise the economic benefits for both the country and the industry.
Therefore the key finding of my interim report is that Government (both HM Treasury and the Regulator) and Industry must adopt a cohesive tripartite approach to develop and commit to a new, shared strategy of Maximising Economic Recovery for the UK (MER UK) to maximise the huge economic and energy security opportunity that still lies off the UK’s shores.