Oil & Gas UK, the leading representative body for the UK’s oil and gas industry, accused the British government of focusing too much on renewables and nuclear power while ignoring the oil and gas industry. Currently, this industry is responsible for supplying almost 66% of the total energy needs of UK.
According to Oil & Gas UK, 50,000 jobs are in jeopardy unless tax incentives for the industry are enhanced.
“There has been a lack of focus on the foundations of energy supply,” said Malcolm Webb, Oil & Gas UK chief executive.
Webb emphasised that the transport, heating and power generation industries account for two-thirds of energy demands while one-third comes from power generated by renewable energy.
Sam Laidlaw, Centrica chief executive, supported Webb’s comments. “Our gas supplies are very important. There is a presumption that we will just be able to import limitless quantities. And if you look at where it is coming from … there is no guarantee those gas molecules will come to the UK.”
Oil & Gas UK’s newest annual report showed that the amount of North Sea drilling for the past six months went down by 57%. The same report also showed that investments went down by £1.2bn from 2006 to 2008. Total production also went down by 5%, reaching only 2.64m barrels per day.
In related news, OPEC has announced that worldwide demand for its crude will not go back to 31m barrels per day, the average level of consumption in 2008 prior to the economic crisis, until the year 2013.
