N.Sea oil sector faces ‘rapid and premature’ decline and fall

jurassic-rig2A new report on the North Sea oil and gas industry has shown that it is vital that the UK government takes urgent action to help the industry in the forthcoming Autumn Statement – or risk “a rapid and premature decline” in an industry that has the potential to carry on for decades.

The report, published by PwC, says the North Sea industry needs decisive action to fix “fundamental problems”.

And the UK government, which retains control of the main economic and tax levers, must take the opportunity to do this in the Autumn Statement – or risk yet another betrayal of Scottish industry, the SNP said today.

This follows calls from industry body Oil and Gas UK earlier this month demanding that the Chancellor makes commitments to support the industry in the Autumn Statement.

Gillian Martin, SNP MSP for Aberdeenshire East, said: “Tory government ignorance of the needs of the North Sea industry is laid bare in this report. It makes clear that the oil and gas sector has the potential to develop, but only if the UK government provides the right support – which they have failed to do for decades. 

“PwC has said that there is more than just the fall in the oil price to consider when looking at the industry’s future – and it is clear that the UK government’s decades of mismanagement has left the oil and gas sector in this situation where it risks a ‘rapid and premature decline’ if action is not taken.

“This is why the Chancellor must listen to industry experts and take the decisive action necessary to help support the North Sea industry – which supports thousands of jobs across Scotland and the rest of the UK.”

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