UK Government to continue supporting North Sea oil and gas

The Government has said it will continue to support the North Sea oil and gas industry by establishing a governing body that will be in charge of regulation to help with recover and asset stewardship. The industry had begun to struggle when the oil prices had crashed towards the back end of 2014 and beginning of 2015, and has only recently started to recover. However, the Government do not believe the recovery is picking up enough pace, which is why they will create the Oil and Gas Authority.

All of the Energy Secretary’s governing powers over the North Sea industry will be transferred to the Oil and Gas Authority, and it is these powers that will enable it to maximise the economic recovery.

The North Sea oil and gas industry contributes £3 billion annually to the economy and supports around 375,000 jobs, which is why the Government has made it such a high priority to help with its recovery.

During the same speech an end to the Climate Change Levy (CCL) tax was also confirmed to be ending. RO had helped contribute to subsidies for onshore wind projects, something the Government did not think the country could afford.