First Minister Humza Yousaf has come under fire in the Scottish Parliament for “two-faced” comments about the Rosebank oilfield.
The criticism, from Tory member Douglas Lumsden, comes after it was revealed Ithaca Energy, which owns 20% of Rosebank, had written to the Scottish first minister to say it was “extremely disappointed” with his view on the development.
Then chief executive of the North Sea firm, Alan Bruce, said in the October letter that Mr Yousaf’s comments were not aligned with what was said when they met in person weeks earlier.
Mr Lumsden queried energy secretary Neil Gray on Tuesday in the Scottish Parliament on the remarks.
Mr Gray told a meeting of the Net Zero, Energy and Transport Committee: “The central importance that the traditional oil and gas companies will play in securing our energy transition is clear.
“I have already stated we cannot make that just transition happen without private capital. A large amount of that private capital is going to come from energy companies who have traditionally been involved in oil and gas.”
Commenting after the meeting Mr Lumsden said: “The Minister’s waffling comments today are just what’s frustrating the oil and gas sector about this Scottish Government’s approach.
“The SNP have to be dragged kicking and screaming to say they support the industry — but will not agree with the development required to get that transition to net zero.”
This was in reference to Mr Gray’s comments about making the energy transition move “quicker.”
He told the committee: “There are various projects that are ongoing from traditional energy companies in oil and gas in renewable energy that demonstrate the just transition happening and the movement of workers from the oil and gas industry into renewables, that demonstrate that the just transition is happening.
“My keenness is to see that happening quicker, for it to happen as quickly as possible. And we’ll work with anybody that will help us realise that goal.”
Lumsden claimed Yousaf’s government “are happy to demonise the industry with misleading claims about maximum extraction” while pointing to the number of jobs that the Rosebank project is forecast to create.
© PAHowever, Mr Gray referenced the importance of utilising the skills created in the oil and gas industry earlier in the day.
The cabinet secretary said: “We’re also going to need the skills, expertise and volume of people that have been working in oil and gas to transition to renewable energy.
“I absolutely very much welcome and value the work that those workers have done to date and appreciate the ongoing investment that is going on from traditional oil and gas companies into new energy technologies.”
This did not convince the north-east MSP as he commented: “Rosebank will contribute to supporting 90,000 Scottish jobs, while winding down extraction in the North Sea.
“It’s unforgivable that not one minister could bring themselves to welcome this.
“This letter will embarrass the Minister’s local colleagues who are captive to this two-faced approach.”
Ithaca Energy’s letter to the first minister
In the initial letter from Ithaca Energy (LON: ITH), the firm’s boss pointed to the £8bn investment set to come from the Rosebank oilfield.
Alan Bruce wrote to Humza Yousaf: “We don’t think the taps should be turned off tomorrow, but neither can the north-east have unlimited oil and gas extraction”.
Mr Bruce, who grew up in Dunfermline, where some of the Rosebank components will be manufactured, said the investment is welcome for the whole Scottish economy, not just the north-east.
He added: “We are facing an energy trilemma striving to provide clean, affordable, and secure energy for the nation.
“I enjoyed the open exchange of views and I thought we left with a common understanding from energy companies, supply chain, and investors that the position of the Scottish Government, and indeed your comments, have wide reaching influence despite jurisdiction over oil and gas licensing and development sitting in Westminster.
“I was therefore extremely disappointed by your response to the news that the Rosebank development has been approved.”
