Oil & Gas UK_)) Malcolm Webb Chletexecutive ‘The Rt. Hon. Edward Davey MP wn TK Secretary of State for Energy and Climate Change Sth Foor East Department of Energy and Climate Change Portlané House 3 Whitehall Place Bressonden Place tondon London SW1E 58H SWIA2AW 45 December 2014 wovwoilandgasuk-eo.uke | was somewhat perplexed to read an account in the Financial Times of Friday last concerning _ comments you had made in the sidelines of UN talks in Lima, comments which were also noted in the Times, “The articles reported you backing moves that would encourage investors te think about moving their money out of ‘risky’ fossil fuel assets, suggesting global emission limits could make hydrocarbon reserves unburnable, therefore stranding assets and render ng them worthless. | must confess Ifind these statements unsettling. They come, after al, at a time when you, your Department and the Treasury are putting great effort into delivering the much-needed regulatory and fiscal reforms that will make the UK North Sea more attractive to investors in oll and gas, not fess. i'm intrigued to understand how such opposing viewpoints can be reconciled. ‘The inéustry has welcomed the creation of the Oif and Gas Authority, and the first steps taken by Treasury to reduce the industry's overall tax burden announced in the Autumn Statement. We see these es testament to the Government's recognition of the vital’ importance of the offshore oil and gs industry to the British economy and of the crucial need to stimulate new investment in offshore oll and gas development that wil safeguard UK jobs, tax revenues, experts and secure primary energy supplies. Yet still we see conflicting and confusing messages coming out of DECC, Just lost week I received a copy of the DECC Review newsletter, which apart from a short reference to extra funding for OGA, made no mention of the significant other fiscal measures announced in the Auturnn Statement that ill form part of the tripartite approach to MER UK which ! thought we were all committed to. (0118 as UKis the Wading same forThe UK Ol and Gas Industry Assocatton A. Comsany No. 118608 Fagland | A Connpany Limited by Guarantee | VAL Ne. 241 423935 | Reyhtcied Offie a3 aboveOil & Gas UK_) “The UK will continue to need oil and gas for many decades to meet its long term energy demands. We believed the Coalition understood that point. Consistency of message, particularly as we strive together to secure our shared vision of a successful UK offshore oil and gas industry, must surely be a priority ifwe are to achieve our goal of making the UK continental more attractive to investors and maximising the economic recovery of our oil and gas resource. Looking forward to hearing from you, Malcolm’ Webb’ CC Chief Secretary to the Treasury