A British government-commissioned review said Britain should set up a new regulator that would encourage oil and gas companies to collaborate to help counter falling North Sea production rates.

The government launched the review of the North Sea, the first in more than 20 years, after output plunged by a third from 2010 to 2012.

Although Production has been in decline since 1999, significant decreases in recent years have acted as a drag on economic growth.

Led by the former chairman of FTSE 100 oil services company Wood Group, Ian Wood, the review outlined a plan to increase by 3 billion to 4 billion barrels of oil equivalent.

Industry experts suggest that Britain’s North Sea, with its large number of operators, would be more efficient if there were more coordination between smaller companies and larger companies.

The extra barrels, equivalent to at least 17% more production than the current estimate of 18 billion barrels still to come from the North Sea, would bring over $320 billion of additional value to Britain’s economy, the review said.

“It is essential for the UK’s future growth and prosperity that we maximize recovery of our offshore oil and gas resource. It is therefore crucial that industry and government act now to invest in this shared vision if they are to achieve these goals,” Wood said in a statement.


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