Oil industry welcomes Darling's commitment

25 November 2008

Oil and Gas UK has said it is encouraged by Alistair Darling's statement in his pre-Budget report yesterday that he is committed to working closely with the industry to establish the right incentives to increase production from marginal oil fields.

Having previously expressed its concern to the Treasury about the lack of investment currently going into North Sea oil fields, the organisation's chief executive Malcolm Webb said it looks forward to engaging with the government on its new fiscal regime.

"Such measures are imperative if we are to maximise recovery of the nation's oil and gas reserves and enhance the UK's security of energy supply in the years ahead," he added.

Meanwhile, the price of oil on the global markets remains low - much to the benefit of home heating oil customers and drivers.

Brent crude is currently at $52.45 (€34.66) per barrel while US crude is slightly higher at $52.86 per barrel.

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