Malcolm Webb urges ‘radical change’ over UK Continental Shelf

The chief executive of Oil & Gas UK has called for “radical change” in order to maximise production from the UK Continental Shelf.

Malcolm Webb said anyone who believed the North Sea was currently operating on a par with other major global plays was simply kidding themselves.

He was speaking as delegates gathered in Aberdeen for the opening day of the industry body’s annual conference.

“Whilst current capital expenditure is at an all-time high, exploration is in crisis, our cost base is increasing and average productivity levels have slumped,” Mr Webb said.

“We simply cannot go on like this. We need radical improvement in regulation, in taxation and in the very way we conduct our operations if the UKCS is to be competitive again on the global stage and let us not kid ourselves, right now we are not winning that competitive battle.

“We need to act urgently because the penalty for indecision will be permanent loss of indigenous oil and gas resources and the jobs, the taxes and the security of energy supply which that yet-to-be recovered oil and gas can provide.”