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<p>In June 2013 the then Secretary of State for Department of Energy and Climate Change
(DECC) asked Sir Ian Wood to conduct an independently led review of UK Continental
Shelf (UKCS) oil and gas recovery, specifically looking at how economic recovery could
be maximised.</p><p> </p><p>A key recommendation of the Wood Review was the creation
of a new independent body, responsible for operational regulation of the UKCS, focused
on supervising the licensing process and maximising economic recovery of the UK’s
offshore oil and gas reserves in the short, medium and long terms. Given the many
synergies with aspects of the regulation of onshore oil and gas activities (including
shale gas) the Review also highlighted the strong rationale for a single regulator
to manage the licensing regime for onshore reserves as well. On the basis of these
recommendations, the Oil and Gas Authority assumed responsibility for all licensing
functions related to offshore and onshore oil and gas in October 2016.</p><p> </p><p>In
accordance with the Smith Commission Agreement and St David’s Day Agreement and the
resulting Scotland Act 2016 and Wales Act 2017, we are currently in the process of
making and laying regulations, which will transfer powers for onshore oil and gas
licensing within Scotland and Wales to the Scottish and Welsh Governments respectively.
The responsibility for onshore oil and gas licensing in England will remain with the
Oil and Gas Authority.</p>
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