Business Outlook 2023

2 Of fshore energy snapshot

Providing energy security and economic benefits

• C ommodity markets have been extremely uncertain and volatile • P rices have been high but are declining and showing greater stability • T his needs to be recognised in the fiscal regime, with a mechanism to unwind windfall taxes

• O il and gas still provide more than three-quarters of UK energy • U K production is enough to meet over half these needs – the heart of UK energy security

20%

• P roduction emissions have fallen 20% since 2018 • T he industry supports 215,000 jobs and £28bn in economic value • T here is still huge potential, continuing to meet at least half our oil and gas needs 215,000

• Windfall taxes have eroded investor confidence • Supply chain resources are leaving the UK for more attractive regions • T he industry’s potential is slipping away as a direct result of these challenges – urgent intervention is needed • C ompanies need to be given the confidence to invest, or imports will soar • T he UK’s energy security, jobs, economy, and emissions are being put at risk • B ut a lack of political support is undermining the industry – new investment is at an all-time low

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BUSINESS OUTLOOK 2023