Independent oil and gas exploration companies are at the heart of the liberalised energy market which provides secure and diverse supplies at competitive prices. The independents will continue to play an important role in shaping a cost effective and imaginative approach to the exploration and development of the UK Continental Shelf and in securing the participation of the banking sector and the capital markets in its ongoing development.

From its inception, BRINDEX has significantly influenced the way in which the UK oil and gas industry has evolved. Key areas have included licensing policy and taxation.

Major oil companies were awarded the great majority of the highly prospective acreage on offer in the first four UK offshore Licensing Rounds. Subsequently, BRINDEX and its members lobbied to create an environment in which an independent oil and gas exploration sector could develop for the benefit of the country. We were successful in persuading successive UK governments of the vital role of the independent and, from the Fifth Round onwards, our success in terms of acreage awards rose dramatically. This resulted in a major deployment of British risk capital and debt finance and the new corporate vehicles for this funding went on to establish many joint-venture partnerships with major companies.

Whilst, in the main, the British independents were initially non-operators, the skill bases they built in operational, technical and commercial areas as well as in exploration, meant that a significant number have since become operators in their own right. Today members hold interests as operator in many countries around the world in addition to approximately 161 UK on and offshore licences.

The contribution of BRINDEX members to the UK oil and gas sector is common knowledge to the industry. Less well-appreciated is the successful international expansion of BRINDEX members.

During 2006 BRINDEX members spent some £340 million on exploration and appraisal worldwide of which £262 million was outside the UK. Development and operating expenditure in 2006 totalled £713 million of which some £309 million was international. That overseas expansion is set to continue. This reflects the growing maturity of both the UKCS as an oil province and the BRINDEX member companies as fully fledged E&P operators. The continued overseas growth of BRINDEX members' interests provides a valuable conduit for UK based suppliers and contractors to improve their international presence

Within the UK, independent companies have an increasingly important role to play as the province continues to mature. In 2000, the UK Government acknowledged the challenges facing the industry and established a task force representing the full spectrum of stakeholders. This work has continued into 2007 under the Government/Industry "PILOT" initiative. BRINDEX continues to participate in improving the UK industry competitiveness through its active contribution to such initiatives.