Proposals for greatly enhanced stewardship of the next phase of the UKCS’s life to maximise oil and gas recovery.
I am pleased to publish my Final Report today (24 Feb 2014).
Since Edward Davey, Secretary of State for Energy and Climate Change, asked me in June of last year to lead a review of UK offshore oil and gas recovery, I have taken evidence from a wide variety of interested parties, including approximately:
- 40 companies who have a licence interest in the UKCS; together these companies account for more than 95 per cent of UKCS production and investment
- 15 companies from the supply chain and other key stakeholders in UKCS activities
- 20 key Government figures in DECC, HM Treasury, BIS, Scotland Office and the Scottish Government; and
- 5 International regulators from the USA, Canada, Norway, the Netherlands and Australia
- 75 written submissions in response to key questions and the Interim Report, published on 11 November 2013
I would like to express my gratitude to all those who have contributed, from both government and industry. 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.
In my final report, I set out my recommendations for the next phase of the UKCS. My core recommendations are:
- A new shared strategy for “maximising economic recovery (of oil and gas) for the UK”, with commitment from the government (HM Treasury and a new Regulator) and the oil and gas industry.
- Creation of a new arm’s length regulatory body to oversee and develop this programme of change and growth.
- Greater collaboration and commitments by industry in areas such as development of regional hubs, sharing of infrastructure and reducing the complexity and delays in current legal and commercial processes.