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Bright future for North Sea

Britain’s oil and gas industry has revealed it is investing up to £6billion in new North Sea developments this year, paving the way for an upsurge in business for the region’s burgeoning sector.

Industry body Oil & Gas UK also said that energy firms are considering projects which could lead to £60billion being spent on bringing 70-plus fresh fields into production over the next decade.

Another good sign is that the number of wells being drilled to find oil and gas is expected to rise this year.

The triple boost for the North Sea is outlined in the industry’s annual economic report. It came just a week after oil and gas firms said they were ready to invest hundreds of millions in the search for new fields.

Commenting on the new investment, Bruce Shepherd, managing director of Shepherd Offshore, said: “The £6billion injection is extremely positive news for the region. Enhancement is everything in the industry and this also allows us to bring drilling platforms up to standard.

“We see the North East as major force in these industries and the River Tyne is one of the best rivers to support the North Sea infrastructure.

“The supply chain within this industry is very well established in the North East and the River Tyne is well used to handling all of the vessels that are associated with the North Sea.”

Meanwhile, the chief executive of Oil & Gas UK said the UK industry – which supports 440,000 jobs – had the potential for a great future.

Malcolm Webb said: “As the economy seeks to accelerate out of recession and refocus on manufacturing and technology, the oil and gas industry should be recognised for the important engine for growth that it is.”

The industry said offshore investment had dipped to £4.7billion last year, following unexpected tax changes and rampant cost inflation.

This was posted in Bdaily's Members' News section by Ruth Mitchell .