20 June 2006
There is still life left in North Sea gas and oil reserves for some time to come, according to the government.
It made the assertion after it received a record number of applications from companies wanting to secure a licence for exploration and production in the area.
A record 147 applications were received from a total of 121, many of which were smaller companies that have been encouraged to apply by the government's industry partnership scheme, Pilot.
Energy minister Malcolm Wicks said: "Some say the North Sea is in its twilight years. But the record numbers of licence applications belie this.
"Interest in the North Sea is still high because determined companies realise that our remaining reserves almost match what we have already exploited. Lately the spotlight has rightly been on cleaner energy - renewables and nuclear - but we still need oil and gas and this surge of interest in the North Sea reflects that."
He said that more reserves had become useable as new technologies now make it easier to tap previously hard-to-reach areas.
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