WIRELINE ISSUE 27 SPRING 2014

NEWS ROUND-UP SIR IANWOOD

Q&A

WoodReview Thepublication lastmonthof theWoodReport at theend of aneight-month reviewofmaximisingoil andgas recovery from theUKContinental Shelfwas a seminalmoment for the industry. Wireline talks to its author, Sir IanWood,who was commissionedbyEdwardDaveyMP, the secretaryof state forenergyandclimatechange, to lead thework.

the complexity anddelays in current legal and commercial processes. In addition, the report outlines six sector strategies as key to the success ofMERUK.These cover exploration, asset stewardship, regional development, infrastructure, technology anddecommissioning. Q.Can you tell usmoreabout your vision for thenew regulator? A. Firstly, I believe that the current regulatorymodel in the UK is the right one. But it is still structured and staffed for the

Q.What are the report’s core recommendations?

A. If theUK is tomaximise thehuge economic and energy securityopportunity that lies off our shores, both the government and industryneed to commit to anew shared strategywhich I have calledMERUK (MaximisingEconomic Recovery from theUKContinental Shelf (UKCS)).This is at the coreof the report’s recommendations alongwith the creationof anew arm’s length regulatorybody tooversee anddevelop this

programmeof change andgrowth. Second, it recommends that the new regulator,HMTreasury and industry adopt a cohesive tripartite approach to ensure theUK Government’s fiscal and regulatory policies take account of the late-life

light touch regulation requirement of earlier years.As thebasinhas matured, offshore activityhas fragmented into apatchworkof inter-dependent fields in thehands of an increasinglydiverse rangeof operators.Ninetyper cent of these fields produceunder 15,000barrels of oil equivalent per day and the averagediscovery field size is below 25millionbarrels. To effectively supervise and stewardourmaturebasin,weneed

“If the UK is tomaximise the huge economic and energy security opportunity that lies off our shores, both the government and industry need to commit to a new shared strategy which I have calledMERUK (Maximising Economic Recovery from the UKCS).”

challenges andopportunities of maturity, aswell as encouraging thenew frontier areas and newplays. Third, the strategy requires industry to collaboratemuchmore effectively inkey areas such as thedevelopment of regional hubs, the sharingof infrastructure, the sharingof geophysical information, and a reduction in

a stronger regulatorwithbroader skills and capabilities. Itmust have the experience and capacity to act as the catalyst topromote

Sir IanWood released the findings of his review into the UKContinental Shelf on24February

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