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Report Says North Sea Oil and Gas Sector Needs Policy Changes to Continue
A survey by the Aberdeen and Grampian Chamber of Commerce found most energy businesses believe the North Sea basin can continue operating under different fiscal and regulatory conditions. The report lists specific policy recommendations and includes responses from UK and Scottish government spokespeople.
May 25, 7:01 PM·1m read1 source
The IndependentAudio version
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A report released by the Aberdeen and Grampian Chamber of Commerce states that 93 percent of surveyed businesses believe the North Sea oil and gas sector can continue if certain economic conditions are met. The 43rd Energy Transition report attributes weak industry confidence to financial instability, planning delays, transmission charging, and slow project consenting.
The survey found 89 percent of respondents support new licences and consents when operators can show lower emissions than imported alternatives and greater UK economic value. Sixty-seven percent said planning decisions for onshore grid infrastructure should be made by the Scottish Government rather than local authorities.
The report recommends approving the Jackdaw and Rosebank oil fields, replacing the Energy Profits Levy with an oil and gas price mechanism, and speeding up planning consent. It warns of a growing transition gap that creates infrastructure delays and uncertainty around government policy.
Aberdeen and Grampian Chamber of Commerce chief executive Russell Borthwick said the findings show the need for a more competitive and stable policy environment to retain workforce and industrial capability. " — Russell Borthwick (The Independent) A Department for Energy Security and Net Zero spokesperson said oil and gas production will continue for decades while the government scales up clean energy industries in the North Sea, projecting up to 40,000 new jobs in Scotland by 2030.
A Scottish Government spokesperson said decisions on offshore oil and gas consenting, licensing, and the fiscal regime remain reserved to the UK Government and called for evidence-led, case-by-case decisions that consider climate compatibility and energy security.
