Oil and Gas UK (OGUK) has warned that the UK’s energy transition is at risk of stalling unless the industry receives “vital support” from the government.
In its 2021 Business Outlook report, released today, the trade body said the ability of the sector to recover from the pandemic is a matter of “ongoing concern” and called for regulation to continue to prioritise domestic production over imported energy.
OGUK added that while operators are considering a “range of opportunities” for investment approval over the next couple of years, they are contingent on continued government support, as well as greater market stability.
Overall the industry spent about £3.4 billion pounds less in 2020 than it did in 2019, a drop of 23%, the report revealed.
Drilling activity fell by around half, with thousands of jobs lost across the oil and gas sector as a result of “constrained operations” made necessary by Covid-19.