Posted on 13 November 2013 by Vicky Ellis
The North Sea needs a new “arms length” body to oversee oil and gas extraction on the UK Continental Shelf according to the initial Wood review released yesterday.
It said the regulator should be given stronger powers to administer sanctions and incentives, settle disputes between companies, attend operator consortia meetings – common practice in the Netherlands and Norway – and improve transparency and access to data.
The report added the new body should be given more resources, as DECC is currently stretched too thin.
Malcolm Webb, Chief Executive of the trade association Oil Gas UK agreed with the need for a new body: “The creation of a well-resourced arm’s length regulator will, we believe, provide the single-minded focus required to deliver the maximum economic benefit for the industry and the country in this critical next phase of the UKCS’ life.”