Lobby calls for pro-drilling budget

21/04/2009

The energy industry association Oil and Gas UK (OGUK) is pushing the Chancellor of the Exchequer Alistair Darling to move ahead with plans that will incentivise investment in Britain's offshore oil and gas industry.

Speaking to the Telegraph, Mike Tholen, economic director of OGUK, said that exploration projects have been scaled back sharply since the onset of the economic crisis and warned that unless new investment is encouraged, the country could face a supply crisis.

A weakened domestic industry may mean Britain will rely more heavily on imports to meet demand for fuels such as heating oil, DERV, kerosene and liquefied natural gas.

"Business was slipping away even before the oil price tumbled from highs because the remaining hydrocarbons are in small areas and are technically difficult to extract," Mr Tholen explained.

Mr Darling is also under pressure to promote heavy investment in alternative energy technology and environmental efficiency.