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UK economic recovery "needs a thriving oil and gas sector"

Posted by Simon Pownall on Oct 10, 2014 12:29:00 PM


    

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The importance of the UK Oil & Gas industry to an improving British economy has been underlined once again this past week after comments from a leading industry figure.

According to commentary, the industry will play a vital role in the future of the UK and its economic health with more than one third (35%) of its energy needs satisfied by oil and gas.

The industry is also responsible for supporting a staggering 450,000 jobs – making it vital to British employment as well as overall economic growth.

Regulatory reform needed to stimulate investment

Quoting Sir Ian Wood’s recommendations for regulatory reform, the commentary explained that new investment could only be stimulated if the government was to implement all of Sir Ian’s changes over the next year or 18 months.

Malcolm Webb, the chief executive of Oil & Gas UK, explained:

“To support a lasting and sustainable future, […] we’re calling for greater collaboration – between governments, between government and industry and within industry itself.”

Radical reforms as suggested by Sir Ian would help to maximise the UK’s recovery whilst taking direct action to cut ever-rising costs which are plaguing the industry and wider economy with a series of challenges.

Encouraging production and easing burdens

Michael Tholen, economics director, also supported the proposals and suggested the UK’s oil and gas industry could be instrumental in the country’s recovery.

He claimed that easing the tax burden would be of great benefit to the sector, especially given that operating costs are now as much as 60% higher than they were just three years ago in 2011.

A 1% increase in production has also been heralded as an especially encouraging sign following a number of years of double-digit declines.

By introducing reforms, the government could therefore hope to sustain the country’s ongoing recovery with help from this vital industry – and the fact that Oil & Gas UK has suggested around 15-24 billion barrels of oil still remain on the UK Continental Shelf is only likely to strengthen that fact.

Mirage Machines expands in growing economy

This year Mirage Machines has invested in new premises adjacent to its base in Derby, as well employing more mechanical engineers and technicians.

This follows the opening of their first international base in North America, as subsidary company Mirage Subsea opened in Houston, Texas. Speaking at the time about the expansion, Managing Director Richard Silk said,

"The North American market is a huge prospect for us giving the continuous requirement for technologies for deepwater intervention projects, and ongoing maintenance and refurbishment programmes in topside and subsea operations."

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Topics: Oil and Gas Industry

   

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