The Scottish Government has urged Westminster ministers to take “urgent” action to boost the oil and gas industry in the wake of a troubling report into the future of the North Sea.
Research by Price Waterhouse Coopers suggests the energy sector has endured a “torrid” two years and may undergo a “rapid and premature decline” without assistance.
The report suggested the industry had “reached a fork in the road” – although it added there was “growing confidence” the sector could succeed amid signs prices are stabilising.
Now the Scottish Government has intervened to demand urgent action from Chancellor Philip Hammond in his Autumn Statement.
The call came as Aberdeenshire East MSP Gillian Martin accused the UK Government of “ignorance” and “mismanagement” of the sector.
The Scottish Government welcomed the report that “significant opportunities” remain in the North Sea. But a spokeswoman added: “Measures are urgently needed to give operators the confidence to continue investing, particularly in stimulating exploration to secure future production.
“The UK Government, who retain control of the main economic and tax levers, must consider further measures to support the sector and to help maintain key onshore and offshore infrastructure.
“We believe they can and should take the chance to do so in the chancellor’s Autumn Statement.”
Mr Hammond’s predecessor, George Osborne, announced a number of measures to try to support the industry in his budget earlier this year, including “effectively abolishing” petroleum revenue tax.
But SNP MSP Ms Martin also suggested further action was needed.
She said the chancellor “must listen to industry experts and take the decisive action necessary to help support the North Sea industry which supports thousands of jobs across Scotland and the UK.”
A Treasury spokesman said: “The UK government has provided more extensive support than any other government in response to falling oil prices.
“We have permanently zero-rated the petroleum revenue tax and halved the supplementary charge for the industry. The marginal rate of tax on mature fields has more than halved in the last two years.
“At a local level, we are funding surveys to boost new exploration and supporting cutting-edge research and development.”
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