UKOOA calls for cabinet-level energy post

By OGJ editors
HOUSTON, Apr. 24 -- The UK Offshore Operators Association (UKOOA) has recommended that UK Prime Minister Tony Blair appoint a secretary of state for energy.

The recommendation came in UKOOA's response to the government's energy review. The UKOOA calls for:

-- The creation of an energy policy to recognize and reflect the fact that the UK will become increasingly dependent on oil and gas for its energy supply over 15-20 years.

-- The establishment of a separate department with responsibility to develop and provide leadership on energy policy.

UKOOA argued that energy policy demands greater prominence in the UK government. The UK previously had a cabinet position for energy, but former Prime Minister John Major eliminated the position.

"The trade body claims that the UK's need for a secretary of state at the head of a separate government department with expertise in energy matters is particularly pressing," a UKOOA news release said.

UKOOA Chief Executive Malcolm Webb said numerous teams in different departments now determine the energy policy.

"We need clear and coherent leadership from a single source within government," Webb said. "It's time for the government to focus its energy policy through a dedicated department with full cabinet status. The current dispersed approach will not deliver the outcomes that the nation needs."

Oil and gas currently account for about 75% of UK primary energy supplies, UKOOA said. The share is forecast to increase to at least 80% by 2020.

"That which the UK does not produce itself will have to be imported, at significant extra cost to the economy. Maximizing domestic oil and gas production should therefore be one of the prime goals of energy policy," UKOOA said.