Annual value of Scottish oil and gas production jumps 15% to £17.5 billion

Scotland’s oil and gas production rose by 2.9% between 2015-16 and 2016-17, according to new figures from St. Andrew’s Hoose.

In 2016-17, the approximate sales value of oil and gas produced in Scotland is estimated to be £17.5 billion – an increase of 15.2% compared to 2015-16, due to the increase in production over the year and an increase in prices at the end of 2016 and beginning of 2017.

The Scot-Govt. Oil and Gas Production Statistics 2016-17 also show that production from Scottish waters accounted for 82% of the UK total.

But in 2016-17 capital expenditure on oil and gas production in Scottish waters is estimated to be £8 billion – down from £10.1 billion in financial year 2015-16.

In 2016-17, oil and gas fields in Scotland accounted for 96% of Britain’s crude oil and natural gas liquids (NGL) production, and 63%of British natural gas production.

Oil and Gas Production Statistics includes estimates of activity in Scotland (including Scottish adjacent waters).

The Scot-Govt figures are consistent with British statistics and data published by the Department for Business, Energy and Industrial Strategy (BEIS) and the Oil and Gas Authority (OGA).

The full statistics publication, including results from 1998, is available at http://www.gov.scot/Topics/Statistics/Browse/Economy/oilgas1617

Scottish Energy Minister Paul Wheelhouse, MSP, said: “Scotland’s oil and gas industry has a bright future, and it is encouraging to see this continued increase in production which has risen by a total of 25% over the last two years.

“These figures show that confidence is continuing to return to the sector after a number of challenging years.

“I do recognise that this remains a difficult time for the industry and its workforce. The Energy Jobs Taskforce has delivered an exceptional range of support for industry and individuals in the sector, and the Oil & Gas Industry Liaison Group, which I co-chair, will now take forward the actions identified by the Taskforce, ensuring Scotland’s oil and gas sector has a long-term future.

“The Scottish Government will continue to do everything within our powers to support the industry and its workforce, while calling on the UK Government to improve the fiscal and regulatory regime to encourage on-going investment to support jobs and export led growth.”

Jake Molloy, N. Sea Organiser for the RMT Union, commented: “The energy jobs taskforce has been an invaluable means for engagement between all stakeholders and Scottish Government departments –  something which has never previously been achieved.

“This has provided a far greater understanding of the work and roles of the respective taskforce members and created a foundation to continue building collaborative working to create and sustain employment in the energy sector. The group may no longer meet but the work goes on – it has to.”

14 Sept 2017

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