UKOOG welcomes measures announced in Budget Statement

20 March 2013

UKOOG, the representative industry body for onshore oil and gas operators, both conventional and unconventional welcomes the announcements made by the Chancellor today with respect to Community Benefits, Planning and Taxation.

Ken Cronin, Chief Executive of UKOOG commented: “The UK is currently entering an important phase in terms of the exploration of shale and other forms of unconventional oil and gas. The industry believes there is a very meaningful amount of gas in place in the UK and the public deserves to know and understand the potential of these natural resources to deliver energy security, jobs and growth. The announcements in the Budget today will help the industry to take the next steps in assessing this resource.

“The results from this phase will develop understanding of what will be technically and economically recoverable going forward. Above all, we are firmly committed to working with local communities and operating to the highest standards of both safety and environmental management”

Commenting on the specific measures announced:

Community Benefits

The Chancellor today has announced his intention to bring forward proposals with respect to a community benefit scheme.

“The industry and the Government are in complete agreement on the principle that local communities should benefit from hosting our operations. We will continue to engage actively with the Treasury, the new Office for Unconventional Gas and Oil and local authorities as the proposals are developed.”


The Chancellor has announced that the Government will bring forward technical guidance with respect to planning during the exploration phase and further guidance thereafter.

The first sites in the exploration phase are temporary sites which will be used to gain greater understanding of the geology, costs and flow rates. The results from these sites are critical for the industry and the UK at large to understand what could be technically and economically recoverable.

“We will work with local authorities and communities to create a better understanding of our operations and their impact. It is vital that we have a planning process that works efficiently and UKOOG will work alongside local planning authorities and DCLG to achieve this.”


The Chancellor has today announced an intention to introduce a shale gas field allowance, following consultation, in the Finance Bill 2014 and will consult on other forms of onshore unconventional gas “The proposed taxation measure will be a catalyst for increasing UK drilling activity and thereby attracting new and additional investment. This increased activity will reduce future capital costs in addition to improving the economic threshold for exploitation. UKOOG will take a full part in the proposed consultation process”

Contact: Ken Cronin: This email address is being protected from spambots. You need JavaScript enabled to view it. 0207 680 6500