WITHOUT PRECEDENT: THE DEVELOPMENT OF NORTH SEA OIL POLICY

New policies had to be developed as Britain emerged a major producer of North Sea gas in the 1960's and oil in the 1970s. In the first phase, from 1964 to 1972, policy was directed at establishing the legal framework, an offshore licensing regime and a fast build-up of production. Policies in the second phase, from 1972 onwards, ensured a high share of the profits for the Exchequer, regulated development more strictly, exercised some control of oil supplies, and encouraged the offshore supplies industry in Britain. The Labour Government set up the British National Oil Corporation (BNOC) in 1976 with a majority share in new licences and an interest in existing licences secured through the participation negotiations. The Conservative Government of 1979 maintained these policies, apart from reducing the role of, and planning to introduce private capital into, BNOC.