The UK’s oil & gas fields need a “substantial” tax change to hit targets of increasing oil production by 20% in the next five years.

Industry trade body Oil & Gas UK is calling for a reduction in tax on new fields and additional investment in existing fields, as part of tomorrow’s Budget.

Mike Tholen, Oil & Gas UK’s economics director, says: “With the right measures in place to support continued exploration and investment, the UK’s oil and gas industry has great potential to help the economy through the recession.”

Natasha Delisle-Barrow, director for multilingual, finance and energy divisions of Alexander Hill Recruitment, told Recruiter tax cuts could encourage the investment firms who have held back funding.

“While the immediate effects of the potential tax burden reduction may not translate into recruitment, investment into the sector could increase, therefore opening more doors for new projects and should increase demand for technical and senior staff over a sustained period of time.”

The call to arms comes after oil activity levels dropped in the area (recruiter.co.uk, 6 February 2009).