Scotland’s North Sea oil production rises more than 20% since last year

ecitb-oil-rig-generalAs the North Sea oil and gas industry in Scotland slowly adapts to the sustained period of low prices, production has risen by more than a fifth in the latest year.

The Scottish Government’s 2015-16 Oil & Gas Production Statistics show that Scottish production increased by 21.4% compared to 2014-15 levels. This is the largest annual increase recorded in the statistics, which begin in 1999.

While the total sales value was estimated at £13.4 billion, the value of sales has decreased due to the low price – illustrating the challenges the sector faces.

MSP Keith Brown, Scottish Business Minister, said:  “Although this remains a difficult time for the industry and its workforce, it is encouraging to note this increase in production as the industry adapts to the current period of low prices.

“Capital investment on oil and gas fields in Scottish waters was £10.2 billion and the approximate sales value of oil and gas produced in Scotland is estimated to be £13.4 billion.

“The UK Government retains control of the main economic and tax levers affecting the North Sea oil industry, though the Scottish Government continues to do all that it can to support the industry, including setting up the Energy Jobs Taskforce that meets today for the 11th time in Aberdeen.

“Our support also includes £24.5 million for increased innovation and business-support measures and the £12 million Transition Training Fund, which offers grants to individuals to support their redeployment through retraining or further education.

“We will also maintain pressure on the Treasury to honour promises made in last March’s budget to use the UK Guarantees Scheme for oil and gas infrastructure to help secure new investment in assets of strategic importance.

“Our support has reached around 700 companies to date in areas such as business resilience, leadership and innovation and we remain committed to supporting the sector to ensure it remains a key global oil and gas hub for years to come.”

“With concerted effort from all stakeholders, the Scottish Government strongly believes that the North Sea oil and gas sector can have a bright future for years to come.”

  • Scotland’s unemployment rate has fallen by 1.1% over the quarter to 4.7% and is now below that of the UK at 4.9%.

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