Westminster’s 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 Pete Wishart 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?
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