Media Centre

Monday 28 June 2010

Oil & Gas UK Welcomes Record Interest in 26th Licensing Round

Commenting on the record interest in the 26th licensing round announced by energy minister, Charles Hendry, Malcolm Webb, Oil & Gas UK’s chief executive, said:

“Earlier this year, Oil & Gas UK’s annual activity survey revealed that investment could rise from the £4.7 billion to approach £6 billion and the latest Oil & Gas UK Index showed a marked increase in business optimism and activity across the sector. The recognition in the Budget last week of the importance of fiscal predictability will have helped cement investment decisions and we are pleased that these improved forecasts and business confidence findings are now being reflected in increased activity on the UK continental shelf (UKCS), with record highs in interest in the 26th licensing round.

“It is clear that oil and gas will be required to meet our energy needs for decades to come; indeed, the two fuels now satisfy 74 per cent of our primary energy demand and by 2020, that figure will only have fallen marginally to 70 per cent. The opportunities for further exploration and development are vast, with up to 24 billion barrels of oil and gas remaining beneath our seabed.

“Sustaining investment at £5-6 billion per year is not only goods news for our energy security but also for employment in the Aberdeen area and across the UK. Currently, around 450,000 jobs are supported by oil and gas activity and although domestic production is past its peak, the longer it can be sustained, the better the chances are of anchoring the high technology, high value adding supply chain in Aberdeen. In that way, the benefits of the nation’s oil and gas resource will last long after the last of our reserves have been extracted.”

Ends

For more information please contact Sally Fraser on 020 7802 2404 or sfraser@oilandgasuk.co.uk

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