Tuesday 5 July 2016

If We Think The European Commission Is Bad ...

You probably hadn't noticed but last month we go a new Energy Act, entirely home-grown here in the newly-liberated UK.  "An Act to make provision about the Oil and Gas Authority ..." it says in the preamble.

To get a flavour of just how interventionist this bastard quango is allowed to be, feast your eyes on Chapter 4, entitled 'Meetings'.  In brief, if anyone operating in the North Sea is holding a meeting between two more more companies, they must give the OGA 14 days notice about it, and the OGA can insist on attending.  Or join in the conference-call: yes, they've thought of that one.

Pause for effect.

For a decade I was extremely active in this sector and let me tell you, the number of meetings between companies was astonishing.  This is because (a) it's very usual to form joint ventures to carry out exploration & production in the North Sea, sometimes with many companies involved (check out how many licencees there are in some North Sea permits); and (b) because oil and gas fields often straddle more than one production licence.  The sector has consolidated a bit over the years due to the natural decline in production, but the same principle pertains.

And now the man from the OGA has a right to dip in his wick at all times**.  We haven't had dirigisme like this since Tony Benn made BNOC a carried participant in every licence back in 1975.  But this is 2016, under a majority Conservative government.

And guess what.  
'Andy Samuel, Chief Executive of the OGA welcomed the news that the Energy Bill has now gained Royal Assent. "This is an important step in establishing the OGA with the necessary powers ..." ' 
I'll bet he bloody did.  And, to repeat myself, this is 2016, under a majority Conservative government.

ND  
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** I have a feeling they'll be deluged by hundreds of notifications of "meetings to discuss what biscuits to serve on the Brent Alpha platform" etc.  Also, m'learned friends have not been slow to point out that the Act doesn't take precedence over legal privilege.  And for a small fee, no doubt, they'll be happy to tag along to discuss the biscuits ...

14 comments:

Sebastian Weetabix said...

Which is why we need the right wing of the Tories to finish off this takeover and expunge this Bliar/Cameron/Osborne bullshit.

They can start with the climate change act and associated idiocies.

Anonymous said...

Excellent piece. Shame it won't get the coverage it deserves about this meddling.

Now remind me, who is the meddling Minister of State for Energy

Nick Drew said...

Ah yes, anon - that would be the same Ms Leadsom who wrote on her DECC blog page that UK energy demand is rising ...

CityUnslicker said...

It is disappointing re Leadsom as the more I read and remember, the worse she becomes as a candidate.

She is not the Leader you are looking for, SW.

Anonymous said...

It poses two questions about her

1. Is she a fully paid up member of the dirigiste regime at Energy or more worryingly

2. Is she such a piss-poor negotiator she wasn't able to exert influence to have this approach curtailed or even removed.

Not encouraging.

Anonymous said...

This is all the fault of the offshore industry whinging for a bailout. What do you expect?

Sebastian Weetabix said...

None of them are, CU.

I merely hope she will get us out. I don't think May will.

Nick Drew said...

@ piss-poor negotiator, yup, I am afraid AL can't stand up her much vaunted claim to have been running Barclays Capital or whatever grotesquely exaggerated claim she makes.

oh dear, what's a chap to do? s'pose it's May after all - and she'll be having a regulator attend all meetings on all subjects!

my vote still goes with whomever guarantees No Osborne ...

Lord T said...

Don't see it being a problem. Make all physical meeting on the oil rigs and charge them for the flights.

They won't have the manpower to attend or even dial in to a fraction of them and everything will be as normal.


Just keep the titles vague enough so they don't get the important ones.

So much for a conservative government, again.

Blue Eyes said...

A Conservative government does not always mean a free-market government. You oldies of all people ought to know that.

The Whiggish government of Saint Margaret was a bit of an exception, really.

Anyway, it looks like Leadsom has been "got". Accusations of being in league with UKIP, plus some dodgy-looking tax planning. Au revs Andrea.

The Conservative leader selection system may be brutal, but it doesn't half weed people out!

SumoKing said...

Sobering to realise that Gordon Brown now looks like a towering political figure compared to what has come after him.

andrew said...


SK

I think politicians benefit from a sort of reverse perspective effect whereby the further in the past they are, the greater their stature.


Example : Neil Kinnock - one of the Lab grandees...

Jan said...

Example : Neil Kinnock - one of the Lab grandees...


He will always remain "the Welsh windbag" to me.

Sebastian Weetabix said...

He is known as Lord Pillock of Bedwetter in our house.