The oil and gas sector is vital to Scotland and it is important we have the skilled workforce required to strengthen our overall ambition as a major centre for energy activity.
The oil and gas UK study highlights the need for the UK Government to continue to put in place measures to sustain long-term investment in the UKCS and for industry to work with our colleges and universities to ensure they are delivering the skilled workforce they need and deliver the best value out of the public investment that we provide for the training of the current and future workforce.
But unfortunately the Autumn Statement last week failed to provide the oil and gas industry with the tax measures it both requires and deserves.
North Sea oil is a fantastic asset for Scotland and will be for decades to come, with as much in value still to come as has already be extracted – what is needed is the stable fiscal set-up the sector is calling for.
The current oil price reflects, in part, temporary supply and demand issues in the global commodity market. This is why the vast majority of independent forecasts expect the price of oil to rise again next year – OPEC’s annual World Oil
Outlook published earlier this month predicts a price of $110 per barrel for the rest of the decade and around $100 in real terms in the long-run.
As a sector with significant presence in Scotland I am pleased industry and stakeholders are working together to ensure that any skills issue within the industry does not impact future growth.
Scotland continues to be a world leader in channelling and fostering talent for the global energy market – be it in workplace learning through our commitment to create 25,000 modern apprenticeships, or through our world leading universities.
Scotland’s young people are the future of the industry, and the establishment of the Oil and Gas Academy Scotland will bring together higher education institutes and colleges to support skills needs.
I have recently spoken to a number of companies about how we encourage more women to work in the sector and I was pleased with the level of commitment to make this happen. While much has been done in this regard there is more work to do.
Female participation in STEM sectors (science, technology, engineering and mathematics), including the oil and gas sector, is an economic and social imperative. The late Professor of economics at Glasgow Caledonian University, Ailsa McKay, estimated the lack of women in science and engineering occupations represents a loss of £170million per year to the Scottish economy.
Scottish Government analysis shows that if the current participation rate in Scotland were to increase by just one percentage point, this could boost the level of output by 0.6% (£700million) in the long run.
The Scottish Government is currently modifying our Skills Investment Plan for the energy sector to reflect real-time needs.
This report provides valuable information to help shape our skills initiatives and we will as always continue to work closely with the sector to ensure we can maximise the outcomes from our skills interventions.
Ultimately, this report highlights the importance of investment for the UKCS. Capital investment is declining from a high of £14.4billion in 2013/14, set to reduce to £7.9billion in 2018/19.
The industry needs predictability. If, as the UK Government stated in the Chancellor’s Autumn statement, there will be further tax reductions, they need to know what they will be and when they will be made.
Recommended for you
