UK oil industry suffering from a lack of investment

The UK oil industry is at risk of under investment in the next twenty years, according to 78 per cent of respondents to a survey of senior executives in the energy sector by Lloyds Bank Corporate Markets.

And four-fifths of respondents to the survey thought the industry was not producing engineers in sufficient numbers to ensure UK energy security over the next 50 years.

“As the largest lender in the North Sea, we know from speaking to our clients that an emigration to other markets with more favourable investment conditions, such as Norway, is not motivated by self-interest,” Andrew Moorfield, global head of oil and gas at Lloyds Bank Corporate Markets said.

“Rather, the costs of production can be lower and more predictable than in the UK, a fact which is having a serious impact on the North Sea’s ability to compete for investment internationally.”