A new report by the Oil and Gas Authority estimates overall
recoverable reserves and resources of up to 20 billion barrels of
oil from the North Sea – demonstrating huge cause for optimism in
one of Scotland’s most important industries.
However, the body warns that significant investment will be
required in developing new fields to realise this untapped
potential. This follows the UK government’s budget last week
where the Chancellor failed to set out a single measure to boost
exploration and drilling activity – despite demands from the SNP.
The UK Treasury has long treated the North Sea as a cash cow,
siphoning off billions in revenues over the past 50 years –
amounting to around £600,000 per head of population per head of
population in the North East of Scotland, with little
reinvestment by Westminster. A report published by the IPPR in
April showed that had revenues from Scotland’s oil and gas
industry been invested in a Norway-style sovereign wealth fund in
the 1980s, that fund would be worth over £500 billion today.
The SNP’s Growth Commission recommended that future income
generated should be treated as a windfall and invested in a fund
for future generations.
In light of these latest estimates, the SNP is renewing calls for
the devolution of oil and gas revenues so Holyrood to help grow
Scotland’s economy, create jobs and invest in the future.
, who previously worked in the industry
and co-convenes Holyrood’s cross-party group on oil and gas,
said:
“This is extremely encouraging news for the North Sea oil and gas
sector – an industry which has a bright future and is clearly on
the up after a tough couple of years.
“With people now returning to work, it’s important we support
those jobs over the long term and maximise the potential gain
from these remaining reserves.
“That’s why it was so absolutely astounding – with drilling
activity this year at a 40-year low – that there was nothing in
last week’s Budget to support new exploration and development.
We’re at a crucial juncture, and the Tories sat on their hands.
This report by the UK government’s own Oil and Gas Authority sees
the need for investment, but not the Chancellor himself.
“Over the past decades, successive UK governments have squandered
billions in North Sea revenues, with little reinvested in
Scotland’s economy.
“We shouldn’t make those same mistakes again. It’s high time that
we took control of oil and gas revenues here in Scotland –
allowing us to use these more wisely to grow our economy, create
jobs, realise our potential and build for the future.”
ENDS
Notes to editors: “Enough UK oil reserves for at least 20 years
of production”
https://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-46137555
North Sea oil wealth fund would be worth over £500 billion
https://www.scotsman.com/news/politics/north-sea-oil-wealth-fund-would-be-worth-over-500-billion-1-4718376
