The UK Department of Energy and Climate Change (DECC) has launched an independent review of the UK oil and gas industry to better understand and address the challenges during oil and gas production in the UK continental shelf (UKCS).

Oil and Gas UK, the trade association for the UK offshore oil and gas industry, has welcomed the DECC’s initiative of an independent review of the UK oil and gas industry.

The review will be conducted by Sir Ian Wood, who is widely known for his work in the North Sea oil industry.

Oil & Gas UK chief executive Malcolm Webb said the oil and gas industry is driving Britain’s energy security, economy and innovation.

"In overcoming the challenges of producing oil and gas in a mature province and in ensuring the basin’s full potential is realised, collaboration between companies in the sector and a well-resourced and expert regulator is crucial so we welcome the launch of this review," Webb added.

The review is expected to provide a comprehensive, critical and robust analysis of the pertinent issues.

Schlumberger UK chairman and country manager and Oil & Gas UK contractor co-chair Gordon Ballard said over the last four decades the oil and gas supply chain has built expertise and technology to support production on the UKCS.

"Worth £27 billion to the economy, it is flourishing and driving growth, creating thousands of skilled jobs and fostering innovation across Britain," Ballard added.

"However, if this industrial jewel is to remain anchored in the UK, sustained investment in offshore oil and gas is crucial, so the review of the UK continental shelf, led by the highly informed and respected Sir Ian Wood, is very welcome."