The Scottish Affairs Committee have launched a new
inquiry into the future of the oil and gas industry in Scotland.
The inquiry will examine the challenges facing the sector, as
well as opportunities for future development. It will also
examine the role the UK Government can play in supporting the
industry.
Scotland’s oil and gas industry is central the UK economy,
providing over three quarters of the total energy mix,
approximately £17 billion to the UK’s balance of trade and
supporting over 300,000 jobs. However, the industry faces
challenges in terms of the long-term decline in production
levels, reduced levels of investment, continued low oil prices
and declining tax revenues.
The Committee will also consider the environmental cost,
examining what measures are being taken to minimise the negative
environmental effects of the industry, in particular how
decommissioned extraction sites are dismantled and cleaned up,
and how infrastructure and expertise can be maximised to
contribute to a low carbon future.
The Committee will consider the potential of Scotland’s oil and
gas expertise and infrastructure, exploring how they may be able
to contribute to a low carbon future
Launching the new inquiry, Committee Chair MP commented:
“Scotland’s oil and gas sector has a long been one the UK’s
strongest industries but has undoubtedly gone through a tough
time in recent years. The volatility in the price of energy
prices has made some types of oil and gas extraction in the North
Sea unaffordable, and caused a significant contraction of the
sector.
“Nonetheless, we can be proud of being home to a world-leading,
high tech job provider, that supports so many jobs, provides the
backbone of our energy mix and vital tax revenue. We have
launched this inquiry to understand the long-term prospects for
the sector and understand what role the Government can play in
supporting it. We’ll look at how to maximise Scotland’s
world-renowned expertise, particularly in relation to growing
industries like renewables.
“This will include how we can extract the greatest value from
reserves in the North Sea, and how we can ensure the sector in
Scotland plays a leading role in oil and gas around the
world.”
The Committee invites evidence on the following questions:
- · What
challenges does Scotland’s oil and gas industry face, and how can
they be addressed?
- · How
can the economic return from Scotland’s oil and gas reserves be
maximised?
- · What
action is the UK Government taking to support the long-term
future of the oil and gas industry in Scotland, and how effective
has this been?
- · How
well do the different stakeholders (UK Government, Scottish
Government, companies) work together? Does the current devolution
settlement enable all stakeholders to support the sector?
- · How
can Scotland maximise its expertise, technology and
infrastructure in oil and gas industry to secure the industry’s
future as reserves decline? What support is needed from
Government to maximise these opportunities?
