Extending the life of oil and gas production from the UK Continental Shelf and taking full advantage of the related supply chain could generate more than £290 billion of extra revenue through 2035, says Oil & Gas UK in a policy proposal for the next government.
The trade group includes in its estimate £140 billion in increased gross revenue from oil and gas production via policies oriented to maximum economic recovery (MER) from UKCS resources.
“Our supply chain has the potential to double its turnover within a generation by capturing a larger share of export markets as well as increasing gross revenue from extending UKCS oil and gas production,” the group says.
The UK will hold a general election called by Prime Minister Theresa May on June 8.
In its “blueprint for government,” Oil & Gas UK identifies these priorities:
• Establish an energy policy that realizes the full benefits of indigenous resources.
The group says the government should acknowledge the long-term need for oil and natural gas and the role of gas in lowering emissions of greenhouse gases.
• Ensure the UKCS is globally competitive for investment.
The government, according to Oil & Gas UK, should build “competitive” fiscal and regulatory regimes and invest in “world-class infrastructure to ensure that oil and gas hubs across the UK are connected physically and digitally.”
• Manage the UK’s withdrawal from the European Union, Brexit, to support, develop, and promote the oil and gas industry.
The blueprint seeks “frictionless access to markets and labor,” maintenance of a strong voice in Europe, and protection of energy trading and access to the internal energy market.
• Take practical steps to protect, progress, and promote operators, the supply chain, and the offshore and onshore workforce.
The blueprint lists potential improvements in the oil and gas supply chain, technical development, physical infrastructure, funding of MER-based initiatives, and workforce skills.