Bruce urges Government to think big on oil and gas exploration
February 11, 2009 5:30 PM
Malcolm Bruce is calling on the Government to support new investment in established fields as well as new marginal fields.
Bruce urges the Government to provide new incentives to the oil and gas industry
In response to a letter from the Energy and Climate Change Secretary, Ed Miliband MP, the Gordon MP welcomed the fact that the Government is discussing possible new incentives to support marginal new fields but argues that they should also include enhanced recovery of mature fields.
The Secretary of State, replying to original representations from Malcolm Bruce MP and Sir Robert Smith, MP for West Aberdeenshire and Kincardine said:
"The Government [recognises] the vital role that UK oil and gas resources and the industry, continue to play in helping meet the energy needs, and their contribution to the UK economy…. The Treasury is currently leading Government discussions with oil and gas stakeholders…this includes discussions on possible incentives to support marginal new fields."
On the week that Oil and Gas UK announced the constituency of Gordon has the most oil and gas related jobs in the UK, Mr Bruce responded to the Minister comments, saying:
"The Government is clearly in discussions to provide some incentives to the industry but it limiting this to 'marginal new fields' is not enough.
"Secondary recovery from existing fields has the potential to yield more oil which is trapped and yet to be produced. It is admittedly an expensive process but targeted incentives could assist the industry in taking advantage of the current economic environment which favours exploration. I will be following up with the Treasury on this particular point."
He added:
"The most recent report from Oil and Gas UK shows that Gordon provides more oil and gas related jobs than any other constituency in the UK. Supplying over 60,000 jobs connected to the industry and 10,000 of those directly through oil and gas companies and their major contractors, businesses in Gordon have a stake in persuading the Government how critical their support to the sector is. The statistics show the distribution of oil and gas jobs across the country, including over 16,000 jobs located in the City of London and Westminster alone, this shows it is in all MPs' interests to put pressure on the Government in the interests of their constituents."
ENDS
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