Oil & gas strategy

An oil and gas industry strategy for Scotland, targeting higher long-term recovery rates, greater exports and £30 billion annual sales by 2020, was published by the First Minister.

Oil and gas is the largest industry sector in the UK, contributing almost a fifth of all corporation tax paid to the UK Treasury and supporting 440,000 jobs – nearly half of them in Scotland. Over four decades, 40 billion barrels of oil equivalent (boe) have been recovered from the North Sea, delivering £300 billion in revenues to the UK Government. The wholesale value of reserves remaining to be extracted is estimated up to £1.5 trillion.

The First Minister also announced that Scottish Enterprise will make up to £10 million available to support innovation in the sector over three years, while Scottish Development International (SDI) is to boost activities in key emerging markets, Brazil, Norway and west Africa, building on the recent establishment of an SDI base in Calgary, Canada.

He said: “Oil & Gas is one of Scotland’s greatest success stories, having transformed the economic well-being of the UK over the last 40 years. With as much as £1.5 trillion of oil remaining to be extracted from an increasingly buoyant export now reaching 100 different countries, and emerging opportunities to deploy the sector’s expertise in other offshore projects, the industry has a bright future.

“The strategy identifies key actions which can maximise future opportunities by helping the industry secure the necessary human capital and skills, by supporting innovation and technology deployment to boost recovery rates, by assisting more companies into new markets and by delivering investment in key infrastructure.”

The First Minister also announced that Scottish Enterprise will make up to £10 million available to support innovation in the sector over three years, while Scottish Development International (SDI) is to boost activities in key emerging markets.