Scottish Government
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Oil and Gas Summit
Joint meeting with oil and gas industry leaders.
The oil and gas industry will continue to be an enormous asset to Scotland for many years to come – but urgently needs action on its tax regime in order to protect jobs and investment in the short term, First Minister Nicola Sturgeon has said.
Speaking ahead of the Oil and Gas Summit in Aberdeen where the Scottish Government will meet with the UK Government, industry leaders and trade unions, the First Minister said:
“Energy is an area where Scotland has a strong comparative advantage with its unique geographic opportunities and established expertise. This has led to the development of world leading technologies and skills in our oil and gas industry.
“Since oil was discovered more than four decades ago, Scotland has built a world class industrial cluster in the north sea and now export the skills and services required to support it around the world.
“The North Sea has made an enormous contribution to both the Scottish and UK economies over the last 40 years and I am certain this will continue for many years to come. However, it is vital that for the industry to succeed in the decades ahead we need fiscal and regulatory change in the oil and gas sector.
“In the short term, that means urgent action on taxation to give the industry the certainty and security it needs to protect jobs and investment. It is essential that the tax reductions are sufficient to instil investor confidence, as without that maximised recovery will not be achieved. This is because the extra investment needed for smaller fields, ageing infrastructure as well as much more exploration and appraisal is only going to be made by operators with substantial tax reductions.
"This summit is an important opportunity for joined up action from industry leaders, unions and government to ensure the industry has the brightest possible future.
“Investors need a strong signal that the North Sea is open for business and they need that signal now.”
Notes To Editors
Support and action the Scottish government have taken in recent years:
- Publication of the first oil and gas strategy in 2012
- The enterprise agencies account manage more than 390 oil and gas companies across Scotland
- Launched the £10 million funded Oil and Gas Innovation Centre in Aberdeen
- Established Energy Skills Scotland and the publication of the Energy Skills Investment Plan
- Established the Energy Jobs Taskforce in January 2015 chaired by Scottish Enterprise Chief Executive Lena Wilson
- Announced support for oil and gas apprentices facing redundancy to allow them to complete their off-the-job training and a financial incentive of up to £5,000 to encourage other employers to recruit them
- Scottish Government Oil and Gas Discussion Paper - Challenges, Opportunities, and Future Policy sets out clear proposals for fiscal change
