Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of future trends in the level of investment in the North Sea oil and gas sector.

The Office for Budget Responsibility recently published the November 2016 Economic and Fiscal Outlook which indicates a downward trend in planned capital expenditure in the oil and gas sector due to the low global oil price. Capital expenditure is expected to decrease from £10.1 billion in 2016 to £3.7 billion in 2021.

In the recent Autumn Statement my right hon. Friend the Chancellor recommitted to Driving Investment, Government’s long-term plan to ensure the oil and gas fiscal regime supports maximising economic recovery. To support this, over the past two years Government introduced measures worth £2.3bn to ensure the UK has one of the most competitive tax regimes for oil and gas in the world, safeguarding jobs and investment.

The Oil and Gas Authority has been established with a remit to maximise economic recovery of UK oil and gas reserves. The Oil and Gas Authority continues to engage with the global investment community to promote the UK Continental Shelf and attract new sources of capital. It has also been working with industry to maximise economic recovery of the UK Continental Shelf by encouraging collaboration, driving down costs and ensuring effective asset stewardship.