OIL and gas firms need to double exploration drilling in UK waters to more than 90 wells per year over the next two decades to make the most of the estimated $1.3 trillion (£0.8trn) of resources which potentially remains in the area, accountancy giant Deloitte has said.

The firm also reckons the new Oil and Gas Authority regulator must have the teeth to encourage or enforce new ways of working. Derek Henderson, senior partner in Deloitte's Aberdeen office, said: "There must be more collaboration, with companies working together to make extraction more economically viable and increased coordination between departments at Whitehall." He said, with the "easy oil" days gone, the industry needs a tax regime that is more reflective of the current state of the North Sea and incentivises investment.