August 29 2014 Latest news:
Ben Woods, Business writer
Thursday, June 12, 2014
The government has announced a new body tasked with enhancing the performance of the UK’s oil and gas industry.
Danny Alexander, chief secretary to the Treasury, has revealed that the new regulator will be called the Oil and Gas Authority, with its headquarters based in Aberdeen.
The announcement came as Mr Alexander opened the second day of the industry body Oil & Gas UK’s annual conference.
Retired oil tycoon Sir Ian Wood – who was also a speaker at the conference – pushed for the government to overhaul its current regulation body linked to the Department of Energy and Climate Change amid claims that it was “significantly under resourced and far too thinly spread”.
An improved regulatory body could help add a further £200bn to the UK economy over the next 20 years, according to Sir Ian’s highly-regarded Wood Report, which analysed the vitality and future production value of the UK’s oil and gas industry.
In welcoming the announcement, Malcolm Webb, Oil & Gas UK’s chief executive, said: “The new regulator is now much more than just a vision or a theoretical construct.
“It is beginning to take shape, with a name, a location and – as we heard at the conference yesterday – the search for the new chief executive is underway. This is all very good news for our industry and we look forward to the creation of the new regulator over the coming weeks and months.”
A Norwich-based business which started as a “man with a van” operation is eyeing further expansion after seeing its predicted turnover increase from £6,000 to £340,000 within five years.