Business Outlook 2020 - Activity and Supply Chain

BUSINESS OUTLOOK 2020: Activity and Supply Chain

Supporting the Industry Now and in the Future

OGUK has welcomed the initial support packages to assist industries across the UK in managing the disruption caused by COVID-19. However, it is important that the government recognises that it will take the oil and gas industry longer to recover than other parts of the economy. The disruption causedby COVID-19has been compoundedby the rapid slump in commodity prices following the collapse in demand due to lockdown measures around the world. If not addressed, this set of challenges could result in lasting damage to the capabilities of the industry — harming our ability to provide secure and affordable energy now and in the future, as well as denting the prospects of the UK achieving net zero in the most effective and efficient way. OGUK has proposed a range of mechanisms and levers to both UK and Scottish governments which could help industry overcome the immediate difficulties it is facing and then ensure it is in a position to increase activity levels as it recovers and support the opportunities presented by the energy transition.

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• Protect our industry’s - People - Operations - Businesses - Competitive position • Access government support packages Supporting Industry Now

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Stimulating the Recovery

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Accelerating Net Zero

• Ensure the viability of supply chain and jobs • Stimulate activity levels • Boost our competitiveness - Regulatory - Fiscal - Financial - Skills - Technology

• Maximise energy potential of UKCS as part of a Net-Zero Future • Deliver updated Roadmap and Sector Deal - Diversify into new energies and new markets - Improve GHG emissions performance (Scope 1/2/3)

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