Thursday 15 January 2015

Oil & Gas UK Comment on BP Jobs Announcement

Malcolm Webb, chief executive of Oil & Gas UK, said: "While Oil & Gas UK cannot comment on the commercial decisions made by its members, the industry trade body recognises that a rapidly falling oil price and escalating industry costs have impacted on activity across the UK Continental Shelf (UKCS), with companies having to make very difficult decisions in light of this challenging business environment.

"Oil & Gas UK believes that urgent action is now needed on three fronts. First the industry must proceed to implement necessary cost reduction and efficiency improvement measures. Second, the Department of Energy must proceed as quickly as possible with the full establishment of the new Oil and Gas Authority, and in particular its office in Aberdeen, and third, HM Treasury must radically reduce the tax burden on this mature oil and gas province. Tax rates ranging from 60% and up to 80% are no longer sustainable."

Ends