Oil and Gas UK warns investment ‘collapsing’
Cost cutting in the oil and gas sector has not prevented declining investment in the North Sea, industry body Oil and Gas UK has warned.
According to the industry body’s new activity survey, less that £1bn investment on new projects this year, down from a recent high of £8bn per year.
It also warned if oil price remains low for the rest of the year then over a third of UK oil fields will be operating at a loss.
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Oil and Gas UK's chief executive Deirdre Michie called for greater tax relief for the sector.
"A coherent approach by the industry, regulator and government will be critical to boost the industry's competitiveness and its investors' confidence.
"Together we need to transform the basin into a highly competitive, low tax, high activity province, which is attractive to a variety of operators and sustains and supports the important supply chain based here," she said.
The report also showed that output increased by 10 per cent last year.
The Scottish and UK governments recently unveiled investment of around £500m in the area as part of a "City Deal" for Aberdeen.