The UK shadow financial secretary has warned the energy policies of Scotland’s two governments are plunging the North Sea oil and gas industry into its biggest crisis after hearing directly from the sector at a Fiscal Forum meeting in Aberdeen.
Gareth Davies MP, with shadow energy minister Andrew Bowie MP, met leaders from BP, Shell, TotalEnergies, Harbour Energy, Petersons, Subsea 7, Flotation Energy and trade body OEUK amid ongoing uncertainty within the industry.
During the visit, which included Aberdeen South Harbour, boarding an Offshore Support Vessel, and attending an energy training centre, fears were raised for the sector’s future as calls for the Labour UK Government to overturn its ban on licenses and remove the Energy Profits Levy continue to fall on deaf ears.
Mr Davies echoed the industry’s concerns, stating that the sector requires stability and clarity for long-term investment, as well as new opportunities to unlock future capital to allow companies to remain in the North East.
It follows fears that tens of thousands of jobs will be lost across Scotland after it emerged the SNP government’s Just Transition Fund has spent £43 million over two years, but so far has only managed to save just 120 jobs and create 110 new roles.
Following the Fiscal Forum, which Labour have chosen not to commence since gaining power, Conservative shadow financial secretary Gareth Davies MP said: “The message from the industry at the Fiscal Forum was loud and clear – help us or lose us.
“Both of Scotland’s governments should be working with the industry, not against them, but our meeting in Aberdeen emphasised the disastrous implications if this reckless hostility continues.
“The consequences of Labour’s shortsighted sanctions of increasing the windfall tax, ending the investment allowance and opposing all new oil and gas licences are plunging the North Sea sector into its biggest crisis to date.
“Both Keir Starmer and John Swinney’s desire to kill off the industry is resulting in thousands of jobs being lost, and forcing us to import expensive fossil fuels from overseas with a far higher carbon footprint.
“That is why only the Conservatives are standing up for the oil and gas industry and recognising its importance to our future energy security, jobs and Scotland’s economy.”
Conservative shadow energy minister Andrew Bowie added: “I thank both Gareth and representatives from across the oil and gas industry for their attendance at the Fiscal Forum in Aberdeen.
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“The serious concerns we heard demonstrate the real risks to highly-skilled workers in the North Sea under Labour and the SNP’s current approach.
“There’s nothing just or fair about relying on costly foreign imports rather than our own oil and gas at home which is why only the Conservatives are standing up for the industry to safeguard its future.”
