Oil and gas jobs to be given support through tax breaks

The oil and gas industry has received a welcome boost following recent reports on the troubling times ahead for the energy and fuels industry.

A report from Oil & Gas UK has shown that in its 2013 Activity Survey, the industry had been buoyed by recent government tax breaks, which have encouraged development and provided a number of opportunities – including jobs in construction – throughout the sector.

These findings are both good news for the industry and also the employment market, with thousands of jobs set to be created. Also, the UK energy market could benefit, with less of an overseas reliance on fuel.

The UK economy will also receive investment from overseas companies, following the increased production of both oil and gas.

"Here is some really good news for the UK. After two disappointing years brought about by tax uncertainty and consequent low investment, the UK continental shelf (UKCS) is now benefitting from record investment in new developments and in existing assets and infrastructure, the strongest for more than three decades,” said Malcolm Webb, chief executive of Oil & Gas UK.

Mr Webb praised the government for the introduction of targeted tax allowances in order to provide the development of difficult projects. Global companies will now look to the UK as an investment destination, delivering a new wave on investment which is to be crucial for future momentum.

“We look forward to the continuation of this collaboration between industry and government, against the backdrop of each of the UK and Scottish governments’ long-term industrial strategies for this sector which will further boost the supply chain’s capacity to create employment and foster innovation,” he added.

With improvements to the tax regime, the chief executive said that oil and gas reserves are now commercially viable when it comes to development. The approval of such projects from the Department of Energy and Climate Change (DECC) has doubled between 2011-12.