'Support vulnerable oil and gas industry in same way as banks'

OIL and gas industry experts are calling for tax breaks and production incentives from the UK government to maintain jobs in the sector and ensure the country has a stable supply of fuel.

The demands come as research reveals almost half of oil and gas companies in the UK, United States and Canada have been left in a "vulnerable" position by recession.
PSN and McGrigors law firm, was published yesterday by Robert Gordon University.

Of those businesses badly hit, 89 per cent blamed the bank crisis. Oil price change caused problems for 78 per cent of firms.

Chief financial officer of PSN Duncan Skinner said: "The government was pretty bold bailing out the banks. I'd love it to be bolder supporting oil and gas."

Mr Skinner said he wanted a mixture of tax breaks and incentives to encourage large players in the industry to stay in the North Sea and to support smaller firms.

He said such initiatives could secure the production of billions of additional barrels of oil.

Bob Ruddiman, head of energy at McGrigors, said he wanted the government to act to secure a stable domestic supply of oil and gas and to decrease current reliance on volatile overseas markets.
http://business.scotsman.com/energyutilities/39Support-vulnerable-oil-and-gas.5607642.jp