Record View says BP’s departure feels like a hammer blow to the struggling sector.
North sea oil and gas companies are struggling(Image: ANDY BUCHANAN/POOL/AFP via Getty Images)
BP’s decision to sell its North Sea business is an alarming wake-up call that cannot be ignored at Holyrood or Westminster.
The energy giant has been in the region for 60 years and helped create many jobs and a lot of prosperity. Many firms still operate in the North Sea but BP’s departure feels like a hammer blow to the struggling sector.
But it is also predictable given the lack of support for the industry. There is no doubt that oil and gas is bad for the climate and the environment. However Scotland is not the only oil-producing country – and yet we alone seem to be winding down.
It is the economics of the madhouse to effectively shut down an industry then import the same product from a neighbour like Norway. Both the UK and Scottish governments are culpable for creating a negative business environment. Labour has promised no new drilling licences will be granted – a stance that drives investment away.
The SNP under Nicola Sturgeon said it had a “presumption” against new drilling, – which only fuelled the feeling firms are not welcome. New Prime Minister Andy Burnham has signalled a welcome rethink in recent days. Until a global deal on reducing fossil fuels is agreed – one that is also binding on the US, Russia and Saudi Arabia – the UK should not go it alone.
More drilling would be good for jobs, boost the tax take and help Scotland achieve some much needed economic growth. John Swinney needs to recognise this by getting off the fence and backing this vital industry.
Burnham is on the right track by saying he wants the North Sea oil industry back operating at full pelt. Now he has to match those words with action.
Everyone a winner
This weekend sees the closing ceremony of Glasgow’s Commonwealth Games – and what a joy it has been.
Our swimmers netted a remarkable medal haul, while cyclist Neil Fachie came out of retirement to snatch yet another gold. Newly added sports like basketball have electrified crowds and the city has been alive with activity.
There were reasonable doubts whether Glasgow should have stepped in to save the Games. But the gamble has paid off – and a key lesson has been learned that you don’t have to spend millions of pounds of public money to achieve success. Everyone in Scotland who has made these Games a success deserves massive credit.
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