FRESH concerns have been raised about the UK oil and gas industry after figures from the Office of National Statistics (ONS) showed a fall in production.

News that November's index of production for oil and gas extraction fell by 3.7 per cent on the previous three months, and were down 9.1 per cent on the same three months a year ago, gave cause for "significant concern", the Liberal Democrats said.

Malcolm Bruce, LibDem MP for Gordon, in Aberdeenshire, called on Chancellor Gordon Brown to introduce the exploration expenditure supplement as a matter of urgency.

The supplement was announced by the Chancellor in last year's pre-budget report to make oil and gas exploration more attractive.

Oil output has been affected by production problems in recent months.

The gas pipeline linking UK supplies with Europe was importing gas for much of November, having exported every month since February 2002.