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<p>The Office for Budget Responsibility recently published the November 2016 Economic
and Fiscal Outlook which indicates a downward trend in planned capital expenditure
in the oil and gas sector due to the low global oil price. Capital expenditure is
expected to decrease from £10.1 billion in 2016 to £3.7 billion in 2021.</p><p>In
the recent Autumn Statement my right hon. Friend the Chancellor recommitted to <em>Driving
Investment, </em>Government’s long-term plan to ensure the oil and gas fiscal regime
supports maximising economic recovery. To support this, over the past two years Government
introduced measures worth £2.3bn to ensure the UK has one of the most competitive
tax regimes for oil and gas in the world, safeguarding jobs and investment.</p><p>The
Oil and Gas Authority has been established with a remit to maximise economic recovery
of UK oil and gas reserves. The Oil and Gas Authority continues to engage with the
global investment community to promote the UK Continental Shelf and attract new sources
of capital. It has also been working with industry to maximise economic recovery of
the UK Continental Shelf by encouraging collaboration, driving down costs and ensuring
effective asset stewardship.</p>
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