Britain’s oil and gas industry contributes about £24 billion in Gross Value Added to the economy and employs approximately 240,000 people directly and within the wider supply chain. Oil and gas, which supplies more than 70% of the UK’s total primary energy, is evidently still an important sector for the UK. However, in many respects, the industry is in long term decline. Production, revenues and its contribution to GDP have all fallen. The sector now faces three immediate challenges to its success: a rising cost base, the impact of the sharp decline in prices and a burdensome fiscal regime.
