UK Expects 28 New Gas, Oil, Fields in 2013

The British government says it expects renewed life from its North Sea oil and natural gas fields after years of decline, agencies reported. Energy Secretary, Ed Davey, has said he expected to approve dozens of new offshore projects.

Davey made the comments in Parliament and later reiterated them at a reception for members of the gas and oil industries.

The government expects around 28 new oil and gas fields on the UK Continental Shelf to get approval this year, following the approval of 29 projects in 2012.

Speaking at the British Oil & Gas Industry All Party Parliamentary Group at its annual reception at Westminster Palace, Davey confirmed government support for the UK oil and gas sectors.

"Oil and gas will form an integral part of the UK energy mix for decades to come. Over 70% of the UK's primary energy demand may still be filled by oil and gas into the 2040s. With 20 billion barrels or more still to be drawn from the UK’s North Sea fields, having an indigenous source helps prevent overreliance on imports from more volatile parts of the world," Davey said.

"So the UK oil and gas industry is a vitally important strategic resource now and over the next half century, to help fulfil our energy needs and as a contribution to the UK’s energy security."

Davey illustrated how the UK government has been acting to encourage investment and innovation in the oil and gas sector.

"Introducing, for instance, new field allowances West of Shetland; extending the small fields allowance; and putting in place new allowances for shallow-water gas fields."

The result of this has seen the level of investment in new oil and gas fields increase significantly in recent years, the Energy Secretary said.