The United Kingdom is set to unveil plans to create a new regulatory body to oversee maximisation of production at the country’s limited North Sea oil fields.
The UK’s share of the North Sea reserves are believed to amount to billions of barrels but the product is notoriously difficult to extract. With much of the infrastructure used at the sites approaching the end of its life-span, the UK is keen to extract as much as possible in the coming years.
The government is expected to announce plans for a more powerful regulatory body on the 24th February at a meeting in Aberdeen, Scotland. The announcement will publish the findings of a government commissioned report, which will be issued on the same day.
The report is expected to recommend the formation of a more powerful regulatory body charged with ensuring closer cooperation between firms working in the field, the exploration of new sites and the implementation of a codified, long term strategy for the country’s oil & gas future.
Ultimately, the new body will be responsible for realising an additional 3 to 4 million barrels of oil, worth around $334 billion. This cash injection would be a major boost for the UK’s beleaguered economy.
The new regulator will also act as an intermediary between firms who say that their efforts are being scuppered by the fact that large oil companies are showing little interest in the region.
Historically the UK’s oil and gas industry has been regulated by the UK government.
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