Onshore oil and gas industry welcomes fiscal regime announced in Autumn Statement
5 December 2013
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 new fiscal regime for the onshore oil and gas sector.
The fact that the incentives outlined have an impact only when the industry starts making profits is a vital signal to the sector and potential investors that the UK is serious about onshore oil and gas extraction.
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.
Ken Cronin, Chief Executive, UKOOG said “Today’s announcement of a new onshore oil and gas regime is as much about tomorrow as today. To build a strong industry which can contribute to the UK economy, the country needs the correct framework for operators, and that includes a clear signal that an appropriate and fair tax regime is in place that will incentivise the long term nature of investments. The Chancellor’s initiatives should be welcomed as they give that strong signal.”
About UKOOG: UKOOG is the representative body for the UK onshore oil and gas industry including exploration, production and storage. The organisation’s objectives are to enhance the profile of the onshore industry, promote better and more open dialogue with key stakeholders, deliver industry-wide initiatives and programmes and to ensure standards in safety, the environment and operations are maintained to the highest possible level. Membership is open to all companies active in the onshore industry including those involved in the supply chain.