EU referendum - PwC comments on the impact on the energy industry (nuclear, utilities and oil and gas)

Published at 10:30 AM on 24 June 2016

The UK oil and gas industry

Alison Baker, PwC’s UK and EMEA oil and gas leader, said: 

"The oil & gas industry is a global business and as a result should be less impacted by today's EU referendum result. 

"We've seen the industry, both here in the UK and further afield, demonstrate its resilience in dealing with volatility and uncertainty through past and current oil price shocks - and we are convinced that they can do so again. 

"However, there will be some hurdles on the road ahead. Any further downturn in the economy or volatility in the oil price could cause further distress in the sector and in particular further project sanction deferrals might have significant consequence for the service sector who also rely on mobility of employees around the world.

"It will be vital for Government, OGA and Industry to accelerate the level of collaboration over the coming weeks and months to ensure that together we can work through this additional layer of uncertainty."

Utilities and the energy trilemma

Steve Jennings, power and utilities leader at PwC, commented:

"Many will applaud the opportunity to remove perceived European “red tape”. However, this is likely to take considerable effort at a time when the industry has other pressing issues to address, namely achieving a secure supply, decarbonising our energy industry and delivering electricity and gas at affordable prices.

"Tackling the energy trilemma will undoubtedly be more challenging without the support of a European-wide energy system with ready access to European sources of capital and talent." 

 

Nuclear industry

Fiona Reilly, PwC’s Global Head of nuclear capital projects and infrastructure commented on the EU referendum result:

“Today’s decision to leave the EU could have a significant impact on our nuclear programme.

“Ongoing uncertainty in the market, at least in the short term, could affect access to capital and investor confidence in what is already a limited trading arena. And while the UK government will need to work out political, trading and legal issues, we will also potentially need to renegotiate our involvement in the Euratom Treaty and our 123 Agreement with the US - and this will take time.

“It will be vital for the UK Government, DECC and nuclear bodies to work together to secure a positive outcome for our energy industry and we are committed to working alongside them as they adapt to these new market conditions.”

ends

Note to editor

For interview requests, please contact:

Lynn Hunter - [email protected] / 07841 570487;

David Jetuah - [email protected] /07531439437; or

Katherine Howbrook - [email protected] / 07595 609 737.


About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
©2016 PwC. All rights reserved

 


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About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. © 2016 PwC. All rights reserved

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