The British economy is set to recover an additional three to four billion barrels of North Sea oil and gas, and is expected to receive a potential £200bn boost over the next 20 years, according to a report.
The report has been commissioned by the UK Government, which will use the security of its pooled resources to be able to fast-track all the recommendations of Sir Ian Wood’s review on maximising recovery from the UK Continental Shelf.
The government offers the basis to unlock the investment needed to achieve the objectives outlined in order to increase economic production.
The objective involves improving industry efficiency, increasing production of oil and gas by one third, and boosting jobs in the industry, which already employs 450,000 people.
With an investment of £14bn, the UK Continental Shelf is said to face unprecedented challenges.
During the last three years, production has decreased by 40% and efficiency has fallen to 60%, costing £6bn to the economy.
Energy and Climate Change Secretary Edward Davey said: "Britain will still need large amounts of oil and gas, even as we cut our carbon emissions over the coming decades.
"So with recent large falls in North Sea production, I commissioned this report from Sir Ian Wood to see how we can reduce the oil and gas we would otherwise import by boosting UK offshore production."
Prime Minister David Cameron said: "I promise we will continue to use the UK’s broad shoulders to invest in this vital industry so we can attract businesses, create jobs, develop new skills in our young people and ensure we can compete in the global race."
The key recommendations include a new shared strategy for maximising economic recovery of UK oil and gas, and the creation of a new arm’s length regulatory body so as to oversee and develop the change and growth programme.
The recommendations also include collaboration by the oil and gas industry in areas such as development of regional hubs, sharing of infrastructure and reducing the complexity and delays in legal and commercial processes.