British oil and gas trade group sees big investment potential

May 31 (UPI) -- With the right strategies in place from Downing Street, a British trade group said as much as $370 billion could be drawn to North Sea oil and gas.

Trade group Oil & Gas U.K. said Wednesday it has a blueprint for the future of the North Sea that envisions $370 billion in potential revenue for the British economy over the next 20 years by tapping into the estimated 20 billion barrels of oil and gas yet to be recovered offshore.

"Our blueprint details the steps we believe our political leaders should take to help sustain our industry, which continues to help secure the U.K.'s energy needs and supports hundreds of thousands of jobs," Chief Executive Deirdre Michie said in a statement.

A March report from the group found total British offshore production was up 5 percent from 2015 to 1.73 billion barrels of oil equivalent, a trend that should continue. That follows a 15-year period of steady declines from British waters.

Michie at the time said confidence was returning to the North Sea and cash flow generated by exploration and production companies was expected to move into positive territory for the first time since 2013.

After reporting a first quarter profit of $1.5 billion, compared with a year-over-year loss of $583 million, British energy company BP said it was embarking on plans that could double its North Sea production to 200,000 barrels of oil equivalent per day by 2020.

Presented ahead of British general elections in June, the oil and gas trade group called on the next leaders to ensure policies are in place to capitalize on the reserve potential, provide assurances for offshore competitiveness and make sure buffers are in place to support the oil and gas industry while the government negotiates its divorce from the European Union.

Michie said it was incumbent upon the next batch of British leaders to support the oil and gas sector during "a busy political environment and a difficult operating climate for the industry."

Polling data from YouGov finds support for the party led by British Prime Minister Theresa May eroding, rattling investor confidence during Brexit negotiations.