Onshore oil and gas industry welcomes the Chancellor’s commitment to skills
19 March 2014
United Kingdom Onshore Oil and Gas (UKOOG), the onshore oil and gas industry’s representative body, welcomes today’s announcement by the Chancellor of the Exchequer of a commitment to ensure “that the UK has the right skills and supply chain in place to benefit from the huge potential of the country’s oil and gas reserves”.
The creation of a strong, safe and environmentally sensitive onshore oil and gas industry will have many benefits for the UK including job creation, tax revenues, direct community benefits and the reduction of dependency on imports, which will reduce price volatility and enhance energy security.
In early January a supply chain and skills study was launched, conducted by EY (formerly Ernst & Young), the professional services firm, and funded by the Department of Business Skills & Innovation (BIS) and UKOOG. The study aims to demonstrate the potential for wider industry to benefit from the development of the shale gas industry in the UK as it enters the next phase of its development. This study is expected to be published by the end of April.
UKOOG also welcomes moves by the Chancellor to clarify areas of the tax regime for onshore oil and gas which will bring greater certainty for investors in this strategically important sector.
Ken Cronin, Chief Executive, UKOOG said “The Chancellor recognises that a strong shale gas industry can contribute to the UK economy not only by producing a secure source of indigenous energy but also by creating job and developing skills. The Government also accepts that a fair and consistent tax regime is in place that will incentivise the long term nature of investments. This Budget should be welcomed as it goes a long way to establishing the framework for the British shale gas industry.”