Scotland’s oil and gas sales fall to £22bn

The Scottish Government said on Wednesday that statistics produced by Scotland’s Chief Statistician show the approximate sales value of oil and gas produced in Scotland is estimated to have been £22 billion in 2019. (*See update at end of this story)

This was down 13.7% compared to 2018 due to a combination of declining production and a reduction in oil and gas prices.

The statistics showed oil and gas production in Scotland, including Scottish adjacent waters, is estimated to have been 74 million tonnes of oil equivalent (mtoe) in 2019.

This was a decrease of 3.9% on 2018 — and accounted for 78% of total UK production.

Production of crude oil and natural gas liquids (NGL), which account for nearly three quarters of the total, increased by 2.3% to 54.0 mtoe, which is the highest level since 2010.

This was offset by a fall of 17.4% in natural gas production, to 20.0 mtoe.

Operating expenditure, not including decommissioning, increased to £7.4 billion.

Capital expenditure in Scottish adjacent waters increased to £6.1 billion.

* The statistics originally published in a Scottish Government press release on March 31 for this report were corrected on April 8, 2021, after a processing error was discovered.

The April 8 correction from the Scottish Government read: “Statistics announced today by Scotland’s Chief Statistician show that oil and gas production in Scotland, including Scottish adjacent waters, is estimated to have been 77.2 million tonnes of oil equivalent (mtoe). This was an increase of 0.4% compared to 2018, and accounted for 82 per cent of total UK production.

“In the latest year, production of crude oil and natural gas liquids (NGL), which account for nearly three quarters of the total, increased by 2.2% to 54.0 mtoe, which is the highest level since 2010. This was slightly offset by a fall of 3.5% in natural gas production, to 23.2 mtoe.

“The approximate sales value of oil and gas produced in Scotland is estimated to have been £22.5 billion in 2019. This has fallen by 11.5% compared to 2018 due to a reduction in oil and gas prices. Operating expenditure, not including decommissioning, has increased to £7.5 billion. Capital expenditure in Scottish adjacent waters has increased to £6.1 billion.”

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.