Letter to the Committee from Malcolm Webb,
Chief Executive, UKOOA
Dear Sir,
OIL AND
GAS
I refer to the uncorrected transcript of the
oral evidence taken before the Scottish Affairs Committee on Tuesday
18 July in connection with the Committee's inquiry into the effects
of tax increases on the oil industry, which evidence has now been
published on the Internet. In particular I refer to questions
142 to 145 inclusive. In this series of questions Mr MacDougall
and the Chairman are reported as suggesting that the projection
that the UK could be reliant on oil and gas for 83% of its primary
energy supply in 2020 is a UKOOA generated projection and furthermore
that it is a figure which has been "exaggerated substantially".
I believe it important to point out to you and
hence to the Committee that, as noted in point (iv) of UKOOA's
written submission and as I made clear in my evidence to the Committee
on 20 June in reply to questions 2 and 68, this projection comes
not from UKOOA but from the Government. I should make it clear
however that UKOOA has no reason to doubt the validity of the
data or assumptions on which this DTI projection was made. Furthermore
we would not agree with the Chairman that the Government's projection
is an exaggerated one. In fact we believe it is a proper and prudent
assumption for the purposes of planning future energy supply.
Currently oil and gas provides approximately 75% of total UK primary
energy. This percentage is expected to increase over the next
decade, even allowing for a rapid growth of renewable energy,
the replacement of nuclear capacity with new build and a strong
improvement in energy efficiency.
I would be grateful if you would bring these
matters to the attention of the Committee.
1 August 2006
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