Governments urged to give ‘full-throated support’ to North Sea oil and gas

Scottish ministers have been told that a presumption against new oil and gas developments in the North Sea “must go” – with business leaders in the north east saying the sector needs “full-throated support” from both Holyrood and Westminster.

Two years after the Scottish Government announced a presumption against such developments, Aberdeen and Grampian Chamber of Commerce (AGCC) has instead urged ministers to adopt a policy in favour of energy security, alongside a transition to net zero.

Chamber chief executive Russell Borthwick made a plea to First Minister John Swinney to switch to a stance of support for domestic oil and gas production – arguing this is preferable to having to import fossil fuels from other nations.

He 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”.

Mr 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.”

He insisted: “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.”

There was speculation last year after Mr Swinney took over as First Minister that the Scottish Government could end its presumption against new oil and gas developments, a policy which came in when Nicola Sturgeon was in charge.

Mr Swinney however has stressed the importance of ensuring climate compatibility assessments can be met before the government will support new developments.

But Mr Borthwick said that the “presumption against oil and gas is disconnected from reality” as he noted that last week energy firm Centrica gas warned that gas stores have fallen to “concerningly low” levels during the freezing cold weather.

The Aberdeen and Grampian 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” over this.

Mr 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?”

He stressed the importance of using “the expertise of our oil and gas workforce to lead the global energy transition”, with Mr Borthwick stating: “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.”

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

Acting Cabinet Secretary for Net Zero and Energy, Gillian Martin, said: “We are clear that any further extraction and use of fossil fuels must be consistent with Scotland’s climate obligations and just transition commitments.

“It is vital that we take an evidence-based approach to the energy transition, which ensures that we support and retain the skills and investment needed for the transition to net zero.

“Decisions on North Sea oil and gas licensing are reserved to the UK Government. We have consistently said that these should be made on a case-by-case basis and include rigorous assessments of both climate compatibility and energy security.”

David Whitehouse, chief executive of Offshore Energies UK, said: “Homegrown affordable energy is critical to the success of the UK’s industrial strategy and broader plans for growth.

“Where you get energy from and how much it costs is the cornerstone of the entire economy.

“The UK is now importing more energy than at any time in the last 60 years, but we still have significant oil and gas reserves around in our offshore waters and we should use them responsibly alongside an acceleration of renewable energy.”

Tessa Khan, executive director at campaign group Uplift, said: “Oil and gas companies and their cheerleaders are increasingly out of step with the rest of the business community in Scotland.

“According to a recent poll, two-thirds of Scottish business leaders support ending new oil and gas licensing and over 80% are in favour of the UK Government’s wider plans to end the role that fossil fuels play in generating the UK’s energy.

“With our dependence on volatile gas driving energy bills up, it’s little wonder that they see it as benefiting their businesses as well as in the public interest.”

A spokesperson from the UK Department for Energy Security and Net Zero said: “The best way to secure Scotland’s energy economy is to invest in the clean power transition.

“That is why it is at the forefront of our drive towards net zero and clean energy, with Great British Energy’s headquarters to be located in Aberdeen.

“Backed by £2 billion, we are supporting 11 green hydrogen projects across England, Scotland and Wales.

“Our historic carbon capture funding is also the first step to a self-sustaining market and it is our firm ambition to proceed with projects in the Track-2 clusters.

“Our priority is a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, and we will work with the sector to protect current and future generations of good jobs.”