Investment in oil and gas in the UK has reached its highest level for 30 years.

Tuesday 26 February 2013

Investment in the UK oil and gas sector has hit its highest level for 30 years, a new report shows.

Projects include a wide range of developments of different sizes, climbing to £11.2 billion last year, according to Oil and Gas UK’s latest Activity Survey.

In 2013 figures are expected to soar even higher, topping £13 billion by the end of the year.

A number of major investments have been sanctioned over the past two years, with the majority off the coast of Scotland and its islands, but several are also down the eastern coast of England. Two are offshore in north Wales near Rhyl and Conwy.

Malcolm Webb, chief executive of Oil and Gas UK, said that much of the new investment had been a result of the government’s targeted tax relief to incentivise difficult projects.

More reserves have become commercially viable as a result, which explains why the number of projects submitted to the Department for Energy and Climate Change and then approved nearly doubled from 2011 to 2012.

Thousands of jobs are being created as a result, including opportunities for contractors across the energy and engineering industries which will continue to grow alongside the rest of the sector.

By Victoria McDonnell

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