The offshore industry has voiced concerns to the UK Government about losing access to skilled workers from outside the UK post Brexit.
North Sea operators have told government ministers that free trade is less of a concern than facing another skill shortage, which crippled the industry several years ago.
Parliamentary Under Secretary of State for Scotland Lord Duncan of Springbank heard the message first hand from companies in Aberdeen this week at a strategic meeting about unleashing the full potential of remaining North Sea reserves.
The life peer, who started his career as a researcher with oil giant BP, said: “Brexit is less affected by the trade element, although it is a factor.
“The bigger concern was the quality of employees from outside the UK and being able to maintain and secure the skill base on an open basis.
“That was a message that we heard loud and clear and was an important message to take away.”
Lord Duncan, who was appointed to the Scotland Office role in June, was among the officials who took part in the latest Maximising Economic Recovery UK Forum in Aberdeen.
Also present was Richard Harrington MP, the UK’s new energy minister.
In an exclusive interview, Lord Duncan, said that the message from the offshore industry was a “heartening” one despite the concerns over post Brexit employability of non UK nationals,.
He said: “The offshore oil and gas industry is in good shape. Certainly much improved compared to even just a few years ago. the reform of the tax code and the UK government’s support has worked.
“The clear message that we are sending out is that there is the stability within the overall tax world facing oil and gas which has been well received.
“There is a greater appreciation among the players in the North Sea, who are now linking arms, improving efficiency, collaborating and generally improving the situation in what is a mature hydrocarbon basin.
“What I was studying geology back in the 90s we were led to believe that the North Sea would be broadly tapped out by now.
“The reality is quite different.”
The UK Government has committed up to £90 million for the development of the Oil and Gas Technology Centre in Aberdeen.
It was set up to bridge the gap between pioneering ideas and the deployment of a finished product that can assist with increased hydrocarbon recovery or other associated problems facing the offshore industry.
Technology is seen as a key driver in squeezing every last drop out of the North Sea as assets get older and reserves start to dwindle.
Lord Duncan said: “The technology improvements have really enhanced the life of the basin. We are also now able to recover oil in different conditions, and recover more oil from established reserves. In many ways there is a serious future for the offshore oil and gas industry.
“The UK government can help support that by offering stability to investors to recognise that there is not going to be a sudden windfall tax or a sudden manifest change in the overall burden of bureaucracy.
“We also have to recognise that some of the older assets in the North Sea will have to be moved into the decommissioning phase and we are supportive of that too.
“It was a heartening message to take from the day and it’s encouraging that we are on the right track that the players are working together and that the government is on side.”
He added: “We have invested in Aberdeen, such as the Oil and Gas Technology Centre £90million. We’re in talks now about an Industrial Strategy and some of the funds that can be made available through that particular UK funding device.
“It’s also about collaborating with the Scottish Government to make sure we are pulling ion the same rope, in the same direction, as a lot of this will be about how the government of Scotland can work with the common interest of the UK offshore sector.”
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