The government is set to implement Sir Ian Wood’s review ‘UKCS Maximising Recovery Review’ in Scotland, according to UK Energy and Climate Change Secretary Ed Davey.

The report noted that production declined by 40% in the last three years, while the efficiency with which oil and gas is produced has fallen to 60%, costing the economy £6bn.

Britain can increase its domestic energy security and reduce reliance on expensive imports by maximising domestic oil and gas production.

Davey said that the government already supports Scottish energy projects worth hundreds of millions of pounds each year, and large tax and consumer base will ensure that the potential £200bn benefit.

The country has also invested in the world’s first gas CCS plant, which is planned at Peterhead.