The UK oil industry support package could be worth $1.4 trillion over the next 17 years.
The UK oil industry support package could be worth $1.4 trillion over the next 17 years.

UK Mulls Oil Industry Support Package Worth Over $1 Trillion

UK Mulls Oil Industry Support Package Worth Over $1 Trillion

The UK government could be on its way to ratify a massive support package—dubbed a sector deal—with the North Sea oil and gas industry, Scottish Secretary of State David Mundell told local Press and Journal.
"The package could be worth in excess of $1.4 trillion (1 trillion pounds) over the next 17 years," said Mundell, adding that there was “every possibility” it will be agreed, Oil Price reported.
The sector deals are an important part of the UK government’s industrial strategy announced last November and the North Sea oil and gas industry has been eager to take part in this strategy. This year alone, the industry said when making its case for the package, is on track to attract investments of $5 billion this year alone, which should tip the scales in its favor.
Another factor that would help the government make up its mind to provide financial support for the oil and gas industry is the UK’s growing dependence on natural gas imports, highlighted recently during a couple of unseasonal cold snaps that saw the UK resorting to Russian gas despite a political heat-up between the two countries.
Scotland is particularly interested in the longevity of the North Sea oil and gas industry as it is a major revenues source for the local budget, so the Scottish government has been very active in selling the sector deal to the central government.
Preparations for a deal are underway in the industry with various proposals being drafted. The final package, if approved, would likely focus on prolonging the productive life of the North Sea oil and gas industry along with preparing for the long string of platform decommissioning deals ahead and what media are calling “transformational technology”.
So far, the government has provided sector deals to the construction, car-making, life sciences and artificial intelligence sector. There is a hint of urgency for the oil and gas sector since Labor leader Jeremy Corbyn has made a note of warning he would review the tax changes for oil and gas approved by the Conservatives if he became the next prime minister.


Short URL : https://goo.gl/nzBXjh
  1. https://goo.gl/Zd9eT8
  • https://goo.gl/o7yMoz
  • https://goo.gl/sGGJGj
  • https://goo.gl/svDjsS
  • https://goo.gl/JuMEp8

You can also read ...

Norway Intends to Build First Offshore Floating Wind Farms
Norway’s Petroleum and Energy Minister Terje Soviknes will...
Venezuela Oil Production May Soon Sink to 1m bpd
Venezuela’s plummeting oil production is nearing the...
GAP envisages the construction of 22 dams and 19 power plants.
Turkey is taking advantage of its abundant supply of ...
OPEC+ to Discuss Q3 Output Surge
The planned increase of crude production by OPEC+ nations of 1...
Egypt Hikes Fuel Prices by 50 Percent
Egypt has raised gasoline prices by up to 50%, its oil...
US-Saudi  Oil Increase  Plan a Ploy Against OPEC
The US political pressure on Saudi Arabia to boost oil output...
Oil Ministry to Modify Contracts With Domestic Parts Producers
The Oil Ministry plans to modify the contracts it had earlier...

Add new comment

Read our comment policy before posting your viewpoints