Ahead of the Scottish Parliament’s Economy, Energy and Tourism Committee evidence session on the future oil and gas prospects for Scotland, Oil and & Gas chief executive, Deirdre Michie, says the future will be decided now.
The UK oil and gas industry has fostered innovation, supported energy security and skilled employment and generated significant economic benefits across the country for the last fifty years.
While the UK Continental Shelf has benefitted from strong investment over recent years, the future is less certain with severe cost inflation and the extended period of low oil prices together putting enormous pressure on the industry.
This is an opportunity to give evidence to decision makers in Holyrood about what industry is doing to overcome the significant challenges that it faces and also to reinforce the opportunity that remains for this important sector.
Government figures show continued demand for our product, as oil and gas will continue to provide some 70% of our energy in 2030 and beyond. With billions of barrels still to be extracted from the UK continental shelf, and a supply chain worth over £39billion, we have the capability to maintain a significant contribution to Scotland and the UK.
The future over the next fifty years is in the hands of the industry, governments and regulators. The industry is focused on taking action to do business smarter and pursuing cross industry efficiencies through the Oil & Gas UK-led Efficiency Task Group.
Alongside the industry’s efforts to improve its’ efficiency, continued co-operation between the sector, its regulators and governments will be vital to achieving a sustainable, safe and competitive sector capable of maximising economic recovery of the UK’s oil and gas.
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