A new report argues that action is needed to safeguard a “strong, productive and profitable” future for the North Sea oil and gas industry. The report — Sea Change — by accountancy group Price Waterhouse Coopers (www.pwc.co.uk) found that, although 58% of senior executives in the sector across the UK, Norway and the Netherlands feel positive about the future of the North Sea basin, the Treasury and other Government departments need to be “much better aligned to the needs of the industry, from ‘super majors’ to smaller oil-field services firms”.

Alison Baker — PwC’s oil and gas head for the UK, Europe, Middle East and Africa — said: “During our interviews, we picked up a real sense of urgency for help to retain and generate jobs, stimulate growth and ensure security of energy supply. This was matched by a level of frustration at the fundamental issues that need tackling to avert the risk of rapid and premature decline.

“Most respondents also want the Government to take a lesson from Norway and Saudi Arabia and be bold in setting out their blueprint for the future. This must incorporate onshore activity, as well as defining how the North Sea basin will evolve in the short and medium term, and how the ‘end game’ — and subsequent transition to a low-carbon landscape — will be managed.”

Among the report’s suggestions was one for a Government-backed decommissioning fund or equity-backed guarantee scheme to be set up, which would enable independent firms to “focus on squeezing the last drops of oil and gas from the basin”. Also highlighted was the need for an innovative leadership style in the industry, “balanced with wisdom and experience”.

Kevin Reynard, senior partner in PwC Aberdeen, said: “The North Sea still has a strong couple of decades ahead of it, but the decisions to sustain it in that period need to be taken quickly. It’s vital that governments and industry come together and agree a blueprint for action. If all the interested parties join forces to address these issues, then there is hope for the North Sea.”