Debate on transitional support for North Sea oil and gas workers
A Westminster Hall debate has been scheduled for 9.30am on 23 April on transitional support for North Sea oil and gas workers. The debate will be opened by Kirsty Blackman MP.

This Debate pack is prepared for a Backbench Business Debate in Westminster Hall on Thursday 3 March 2016 at 1:30 pm to 4:30pm.The Members in charge are Peter Aldous MP, Mary Glindon MP and Kirsty Blackman MP
Debate Pack: Offshore oil and gas industry (127 KB , PDF)
This Commons Library Debate pack provides a summary of the state of the UK offshore oil and gas industries and outlines the industry, the regulatory framework and key challenges and long term issues for the industry. The Government has introduced an Energy Bill (HL) (2015-16) which addresses the objective to maximise the economic recovery of oil and gas in the UK Continental Shelf (UKCS).
The UK offshore oil and gas industry is important to the economy. The industry supports around 375,000 jobs; it contributed some 0.8% of GDP in second quarter 2015 down from a high of 2.5% in second quarter 2008.
Production levels of oil and gas from the UK Continental Shelf (UKCS) are in decline. The remaining potential of the UKCS is dependent on the future levels of investment. The rapid fall in oil prices since the middle of 2014, from over $100 per barrel (bbl) to below $30/bbl at times in January 2016, has put significant pressure on the UK offshore oil and gas industry.
Oil production declined steadily between 2000 and 2014, while gas production began to fall after 2004.
Oil prices over the period have risen from $28 per barrel in 2000 to highs of $111 per barrel in 2001-12 before falling slightly to just under $100 per barrel in 2014.
Against generally declining oil and gas production, rising prices over most of the period has meant industry income has remained at between £25 billion and £30 billion a year between 2000 and 2013.
Tax revenue has made an average annual contribution over the 10 years 2004 to 2014 of £7.4 billion, though it has declined rapidly in the last couple of years to just over £2 billion in 2014.
Oil and Gas UK reduced its estimate (in September 2015) of those employed in the oil and gas industry to 375,000 jobs from 450,000 at the start of 2014.
Oil & Gas UK estimated that at the start of 2014, the 450,000 employees comprised:
The regulatory functions for licensing offshore oil and activities previously exercised by DECC will in future be exercised by the Oil and Gas Authority (OGA). In the Scotland Bill (2015-16) , regulation and licensing of offshore energy is a reserved matter, this is regardless of which country the waters belong in the UK.
The Government’s Energy Bill (HL) (2015-16) responded to the need to maximise the economic recovery of oil and gas in the UK Continental Shelf (UKCS), the Bill:
In response to the oil and gas market changes, the Government announced on 28 January 2016 the following:
The principle long term issues surrounding the industry are:
There is further detailed briefing in the following Library Briefing papers
Debate Pack: Offshore oil and gas industry (127 KB , PDF)
A Westminster Hall debate has been scheduled for 9.30am on 23 April on transitional support for North Sea oil and gas workers. The debate will be opened by Kirsty Blackman MP.
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