Queen’s Speech: Oil industry to pay for new regulator? (UK)

The UK government’s legislative programme outlined in today’s Queen’s Speech included a section on the Wood Report, which says that the new Regulator to oversee the UK’s offshore operations should be fully funded by the industry.

The government said it would introduce a levy, making power so that the costs of funding a larger, better resourced regulator can be paid for by industry rather than by the taxpayer as is currently the case.

“Clauses will be introduced later in the session to set up a new super agency for the North Sea, with a duty to support the government and industry in maximising economic recovery from this important resource,” the programme reads.

Oil&Gas UK disagrees

Oil & Gas UK, a body representing UK offshore oil & gas companies, in response said that while it strongly supported the Wood Report guidelines as a correct prescription to help maximise economic recovery from the UK Continental Shelf, it did not agree that the whole cost of the new Regulator should be borne by industry.

 Related: Wood Review: UK’s oil industry needs strong, independent regulator

 

Commenting on this, Oil & Gas UK CEO Malcolm Webb said: “We must disagree with the government seeking to absolve itself from all financial involvement or responsibility for the new Regulator.”

“This is not a question of the size of the bill. Production taxes paid by this industry each year run into many billions of pounds and the total cost of the new Regulator will be a very tiny fraction of that. It is rather a question of good governance, transparency and fairness that at least a part of the cost of the Regulator should continue to be borne by the Department of Energy.”

“We look forward to hearing further progress soon on the formation of the Regulator.”

 

Offshore Energy Today Staff, June 04, 2014

 

Share this article

Follow Offshore Energy Today

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Shanghai Int Petrochemical and Offshore Oil & Gas and Chemical Industry Technology and Equipment Exhibition 2019

cippe Shanghai has attracts both domestic and overseas buyer groups, including Shell, Exxon Mobil, Total…

read more >

OIL & GAS PHILIPPINES 2019

Oil & Gas Philippines event display products like Oil & gas, fire protection systems and materials…

read more >

Nigeria Oil & Gas Conference & Exhibition 2019

The annual meeting once again proved to be a great success, gathering over 700 industry professionals…

read more >

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply