PRIME Minister David Cameron has pledged to help deliver investment in the north-east for decades to come ahead of a visit to the region today.
He said the North Sea oil and gas industry was “vital” to the future of the UK economy – and praised Aberdeen’s “can-do energy”.
The Conservative leader arrives today for talks with key figures in the energy sector about new investment and exploration projects.
Speaking exclusively to the Press and Journal in advance of the visit, Mr Cameron said he believed “massive” opportunities remained in the North Sea and he was determined to maximise the potential.
He also delivered a glowing verdict on the city and region’s attributes and economic performance.
The prime minister said: “Aberdeen has been a destination for global investment for many years and I want to see that continue for decades to come.
“It continues to be at the forefront of new technology, new investment and world-class skills and expertise – and shows a real can-do energy and drive to stay ahead and break new ground.
“The oil and gas industry is not only important for our energy security but is a major source of jobs and is vital for future economic growth.
“There is still massive opportunity in the North Sea and I am determined to work closely with the industry in Aberdeen to maximise this and do what we can to promote further investment and exploration.”
Mr Cameron’s remarks will be welcomed by industry leaders, who have endured a troubled relationship with his Conservative-Liberal Democrat coalition government.
On a visit to Aberdeen in the weeks before the 2010 general election, the Tory leader pledged to deliver stability to the sector.
But offshore companies were left reeling in March this year after Chancellor George Osborne launched a £10billion tax raid on oil and gas producers without prior consultation.
The decision was taken despite Mr Osborne saying previously, while in opposition, that the North Sea should not be treated as a “government cash cow”.
The prime minister’s trip to the north-east will be seen as an attempt to repair any damage and provide reassurance about the UK Government’s commitment to helping the sector.
He arrives in Aberdeen in the week that a new report revealed the North Sea industry has the potential to continue for several decades – and its supply chain for longer still.
The 2011 economic outlook from industry body Oil and Gas UK showed investment rose by a fifth to £6billion in 2010, making the oil and gas firms the largest collective investor among the UK’s industrial sectors.
Investment in new projects is on track to increase by a further third to £8billion this year, it said.
Through the supply chain and production, the industry also helped meet more than half the UK’s primary energy demand and contributed some £14.8billion in taxes and national insurance.
Oil and Gas UK chief executive Malcolm Webb said up to 24billion barrels of oil equivalent remained to be produced in British waters.
An estimated 40billion barrels of oil have already been extracted from the North Sea.
The UK Government is currently in talks with the industry over possible field allowances to make marginal fields more attractive and on the issue of decommissioning costs and liability. It is hoped both issues will be resolved by the 2012 Budget.
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