This will involve improving the efficiency with which the industry operates, including increasing the production of oil and gas by one third, boosting jobs and reducing UK’s reliance on expensive imports.

David Cameron, prime minister, said: “For many years the UK has supported the North Sea oil and gas industry and we have worked together to make this an economic success the whole country can be proud of. 

“I promise we will continue to use the UK’s broad shoulders to invest in this vital industry so we can attract businesses, create jobs, develop new skills in our young people and ensure we can compete in the global race.”

Sir Ian Wood commissioned the review in June 2013 as the first strategy assessment of the sector in over 20 years.

“While investment levels are rising and near-term prospects are strong, there are new challenges for exploration and production, and the environment is very different to when production peaked approximately15 years ago,” said Wood.

The Wood report’s key recommendations include:

1. A new shared strategy for ‘maximising economic recovery (of oil and gas) for the UK;
2. The creation of a new arm’s length regulatory body to oversee and develop the programme; and
3. Increased collaboration by industry in areas such as development of regional hubs, sharing of infrastructure and reducing the complexity and delays in current legal and commercial processes.

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