The new Brit-Govt Energy Minister has told oil and gas leaders they have the ‘full support’ of the government in maximising the economic opportunity in the North Sea during his first visit to the region in his new ministerial post.
Richard Harrington, MP, met and addressed oil and gas industry leaders at the Maximising Economic Recovery (MER) Forum and the Oil and Gas Joint Council as well as attending meetings on the Industrial Strategy’s role for supporting the sector and the prospect of ‘Remote Islands’ Wind.
The Minister also listened to proposals from industry for an ambitious and deliverable oil and gas sector deal under the Industrial Strategy.
He said: “These are challenging – but exciting – times with new opportunities in North Sea oil and gas.
“We are working with the sector to build on the £2.3 billion worth of UK government support through our modern Industrial Strategy.
“I want to make it clear that the industry has full support of the UK government, and that we are continuing to create the right environment though a stable and supportive package to allow business, enterprise and jobs to flourish.”
Over the past 50 years the oil and gas industry has extracted more than 43 billion barrels and current production accounts for over 50% of British gas demand and around 65% of oil demand.
With up to 20 billion barrels of oil yet to be recovered by 2035, an estimated £140 billion additional gross revenue from production, and an additional £150 billion turnover from exports could be achieved if the industry is able to make the most of maximising recovery and accessing the global market for oil and gas goods and services.
In June, the first delivery of oil was delivered from one of the largest new drilling operations in the North Sea, following a £2 billion investment in the Kraken oilfield by oil and gas development and production company EnQuest.
Lord Ian Duncan, Deputy Scotland Minister in the Brit-Govt, added: “I will continue to fight to protect Scotland’s world class oil and gas industry.
“We’ve supported Aberdeen through £125m investment in the City and Region Deal, which was key to setting up the innovative Oil & Gas Technology centre.”
Meanwhile, French oil giant Total announced that it has started-up production from the Edradour and Glenlivet fields off the Shetlands.
Delivered ahead of schedule and under budget these projects will bring additional production capacity of up to 56,000 barrels of oil and is further evidence of confidence in the industry.
31 Aug 2017