Scottish, UK governments urged to help oil and gas

Aberdeen and Grampian Chamber of Commerce (AGCC) has told Scottish ministers that a presumption against new oil and gas developments in the North Sea “must go.”

Business leaders in the north-east of Scotland said the sector needs “full-throated support” from both Holyrood and Westminster.

Two years after the Scottish Government announced a “presumption against” such developments AGCC has urged ministers to adopt a policy in favour of energy security, alongside a transition to net zero.

AGCC chief executive Russell Borthwick urged First Minister John Swinney to switch to a stance of support for domestic oil and gas production, saying this is preferable to having to import fossil fuels from other nations.

Borthwick made the call after US President-elect Donald Trump criticised the UK’s move away from oil and gas production, urging ministers to instead “open up” the North Sea and get rid of “windmills”.

Borthwick said: “Donald Trump’s support for the North Sea is welcome, but it should not fall to the President-elect of America to make the case for jobs and investment here.

“We need full-throated support for our oil and gas sector from both our governments, but particularly here in Scotland where it is such a crucial part of our economy.”

Borthwick argued: “The presumption against oil and gas must go and be replaced with a policy position which will deliver energy security and transition in tandem.

“If the alternative is importing oil and gas at a greater carbon cost, then we must favour domestic production.”

Borthwick added that the “presumption against oil and gas is disconnected from reality” and pointed out that last week energy firm Centrica gas warned that gas stores have fell to “concerningly low” levels during the cold weather.

The Chamber of Commerce chief executive insisted that “even the most optimistic projections” showed hydrocarbons – such as old and gas – will “remain part of the energy mix for decades”, as he accused the Scottish Government of “burying its head in the sand.”

Borthwick continued: “Oil and gas currently supports around 200,000 jobs across the UK, almost half of them in Scotland.

“These aren’t just numbers – they are livelihoods, communities, and families.

“Accelerating the decline of North Sea oil and gas will destroy this world-class supply chain, and for what? To make a symbolic point while we continue importing oil and gas from nations with far less stringent environmental standards and a much higher global carbon toll?”

Borthwick stressed the importance of using “the expertise of our oil and gas workforce to lead the global energy transition.”

Borthwick said: “The same engineers who make the North Sea one of the safest and cleanest production basins in the world can pioneer carbon capture, hydrogen production, and offshore wind …

“We can’t get there by demonising the very industry that these workers and companies rely on for work.”