Representatives of the UK offshore oil and gas industry have offered a cautious welcome to the schemes announced in the Budget to help bolster production in the near and medium term.

Speaking to Offshore Mag, Andrew Ogram, oil and gas partner with Deloitte, said that measures such as the introduction of a field allowance to offset corporation tax had been anticipated, but were still welcomed.

"Having said this, some will be disappointed that the announcement did not go further given the current oil price environment and declining exploration activity – for example to introduce additional incentives for companies to explore in the UK," he said.

Offsetting of corporation tax may allow upstream firms to allocate more funds to training and development programmes to ensure that skill levels remain high during the downturn.

Opito has recently warned that it is vital that companies operating in the UK oil and gas industry shed their reputations as conservative employers during the downturn and develop new strategies to retain vital skills.

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