The UK must invest in new oil and gas wells,
across the North Sea, to replace the 2,100 destined for decommissioning, says
Offshore Energies UK’s Chief Executive.
Deirdre Michie, Chief Executive of OEUK, has warned that the UK’s oil and gas production will
drop in the coming years unless it supports energy companies in further
North Sea exploration.
She has warned that as
older wells become depleted and are shut down new ones must be opened – or the
UK will become increasingly dependent on imports.
Deirdre Michie’s
comments came in a powerful speech to the offshore industry’s Decommissioning
conference in St Andrews.
She said: “Last week the government increased the Energy Profits Levy that
it had introduced back in May.
“This means our
headline rate of tax in the UK will be 75% - a step that will only serve to
further undermine investor confidence in our basin.
“Our industry was
planning to invest £200 billion in the broader energy sector – this includes
low-carbon solutions – by 2030.
“Thereby helping to
ensure that the UK can meet its net zero and climate goals.
“But tax changes, such
as the one announced on Thursday, really do jeopardise this and the onus is now
on government to help build back investor confidence if we are to sustain these
opportunities moving forward.”