London issues call to action for energy sector

LONDON, Sept. 8 (UPI) -- A British energy regulator called for collective action to revive an industry that shed more than 5,000 jobs since crude oil prices moved below $100 per barrel.

Brent crude oil prices were trading below the $50 per barrel mark early Tuesday, down more than 50 percent from June 2014. Low crude oil prices have forced energy companies to cut costs and jobs in an effort to navigate the weakened market.

The British Oil and Gas Authority said it was encouraging companies to consider "all possible alternatives" to layoffs, but noted the industry has shed around 5,500 jobs since late last year.

An early 2015 report from industry body Oil and Gas U.K. found the market situation to be "bleak," but added the government was enacting measures to ensure a robust future. That report found production should increase slightly to 1.43 million barrels of oil equivalent per day, provided there are no major disruptions.

A budget plan outlined in March by the government was designed to boost exploration for new oil and gas reserves in British territorial waters. Tax incentives in the new package should help stimulate investor confidence in a North Sea oil and gas industry coping with the decline of older fields, officials said.

The Oil and Gas Authority said the $2 billion package unveiled in March is paying off. Oil & Gas U.K. said last month provisional data trends suggestion oil and gas production over the first six months of 2015 could be 2.5 higher than over the same period last year.

Despite the momentum, the government authority said there should be "no doubt" about the scale of the challenges ahead.

"Our oil and gas industry supports around 375,000 jobs, provides secure energy for our homes and businesses, and generates billions of pounds for our economy every year, at home and through exports overseas," it said. "Government, industry and the Oil and Gas Authority must continue to work together to increase the competitiveness of this vital sector and maintain the significant benefits it brings to the country."