Oil and gas companies have made significant in-roads into reducing the cost of production, but this is in the context of some of the highest operating costs in the world. With the oil price falling from the highs of above $100 a barrel in the summer of 2014, those cuts alone cannot go far enough and real fiscal stimulus is needed to drive renewed investment.
Revenues from UK oil and gas are expected to be negative for the next five years, according to the Office for Budget Responsibility’s forecast.
The chief executive of the UK's Oil and Gas Authority (OGA) said the reduction of the Petroleum Revenue Tax (PRT) from 35% to 0% would help create a "level playing field".
Norwegian operator Statoil said the measures implemented yesterday by the UK Government were a "positive signal" for the UKCS.
A business owner in Europe's oil and gas capital said he has been forced to shut his restaurant because of the current downturn in oil prices.
A change in UK legislation which gives oilfield operators tax relief on decommissioning costs when selling an assets could help speed up North Sea deal, according to EnQuest.
Several years ago I spent time in Australia. Visiting a North Queensland mining community I fell into conversation with an engineer who said something to the effect that one of the biggest problems for the industry Australia-wide was the inability to fight ballooning costs and wage inflation. His further comment was even harder hitting. There were just too many people on the payroll, and too many people very well paid to perform slight-to-unimportant tasks.
The Budget this week was a hodgepodge of measures for the economy with some moves being made to help the oil and gas industry, however, yet again prime opportunities have been missed by the Chancellor to make a more substantial positive impact on the sector.
Serica Energy said production has been impacted on the Erskine field by a pipeline blockage.
Chancellor George Osborne delivered a £1billion “shot in the arm” to the struggling North Sea yesterday.
WINNERS:
A raft of new measures brought in to support the North Sea oil and gas industry have been described as a "mixed bag" by an Aberdeen politician.
Industry body Oil & Gas UK said the Budget unveiled by the UK Government marked "further progress" in modernising tax regime on the UKCS.
UPDATED 0950 MARCH 15
This week I delivered a Budget for the next generation.
George Osborne has announced a package of measures worth £1billion to help the North Sea oil and gas industry.
EY's head of oil and gas taxation gives his quick round-up of the changes made by the UK Government to support the North Sea oil and gas industry.
Oil major's BP and Shell have backed the changes implemented by the UK Government to help support the North Sea oil and gas industry amid the global decline in oil price.
The changes made by Chancellor George Osborne in today's budget will "significantly" help the UK oil and gas industry, according to a leading legal expert.
Oil major Shell's vice president from Upstream in the UK & Ireland said changes brought in by the government are a "step in the right direction" to help the North Sea oil and gas industry.
Energy Voice will bring you budget news as it happens. Check back later today for all of the industry reaction and tomorrow for in-depth analysis.
Oil and gas service firm PD&MS Energy (Aberdeen) has posted higher profits but a slight fall in sales in its first full-year results since its acquisition by private-equity company Inflexion.
Energy logistics group Peterson said yesterday a record number of vessel sharing arrangements since the turn of the year highlighted a new spirit of collaboration in the troubled oil and gas industry.
Two of the largest ongoing development projects in the UK North Sea are under budget and ahead of schedule, one of its shareholders confirmed yesterday.
A survivor of a helicopter crash said he felt "no anger" after it was found pilot error was most likely responsible for the fatal incident, which left four people dead.