A government energy regulator said that British energy sector needs to pull up its socks to tap into the remaining energy reserves in the North Sea. Competitiveness and efficiency in operations will help the companies operating in the sector to generate gains from the available resources.
The chief executive officer at North Sea regular Oil and Gas Authority, Andy Samuel, recently announced the new set of industrial guidelines with the aim of revitalizing the offshore energy sector of the region. He stated in his report, while there remains a significant number of oil and gas producers in the sector, but a gradual decrease in investment both for infrastructural development and exploration of new opportunities is noted.
Samuel stated in his statement earlier this week that much has to be done to ensure optimum utilization of the available hydrocarbon resources at the UK North Sea. It is yet to deliver its full capacity of economic value. Only efficient and competitive environment can unlock the full potential of the available resources. The environment conducive to effective cost management is important to encourage companies confidently invest in the resource today and tomorrow.
The energy officials however, could not eliminate the risk factors associated with the region on account of profitability and the diminishing confidence among investors. To curtain the uncertainty, Samuel, who also served as an executive with BG Group, the leading British Energy Company said that his agency will dedicate its effort immediately to create an environment that would protect the companies’ interests and promote operational efficiency.
A survey conducted by the Oil & Gas U.K. found that the production of gas in the region slipped by a percent on the year on year basis. But the agency is expecting the production to increase to at least US$1.43 million barrels of oil on a per day basis provided that there are no hindrances.