North Sea pioneer Tony Craven Walker has launched a blistering attack on the UK’s main two political parties.
He slammed the Conservatives and Labour for the “damaging and totally illogical impact” to the Scottish economy of their respective North Sea policies.
“We are currently in a pre-election period and I believe this is coloured by distorted short-term position taking and point-scoring, leaving industry… in the crossfire,” he said.
Oil and gas veteran says North Sea policies will inevitably need to be reversed
He continued: “The reality is that, post the election, any new government will have to reverse a lot of the changes and announcements recently made if we are to prevent premature termination of existing offshore infrastructure – and avoid longer term damage to the industry and the UK economy.
“This can be done without affecting net-zero targets but as part of the transition in
which we are all involved.”
Speaking at his last annual general meeting (AGM) before stepping down as chairman of North Sea firm Serica Energy, Mr Craven Walker added he was optimistic “sense and reality will prevail”.
Earlier in the day, London-listed Serica relinquished its licence for the North Eigg prospect in the northern sector of the North Sea, abandoning hopes of a side-track well.
Shares in the “mid-tier” oil and gas company fell more than 8%.
Last December Serica announced North Eigg, once hoped to contain about 60 million barrels of oil equivalent, was “non-commercial”.
‘Whirlwind of anti-oil and gas sentiment’
Mr Craven Walker, 80, started his oil and gas career in Libya in the mid-1960s and went on to help develop the Forties oilfield into a major offshore hub.
He launched two independent energy companies, Charterhouse Petroleum and Monument Oil and Gas, before founding Serica in 2004.
The company’s departing chairman highlighted a “whirlwind of anti-oil and gas sentiment” since the last AGM in 2022.
This is not limited to climate change protestors but also from political parties which “seem intent on scoring points against each other”, he said.
UK parties under fire
He added: “The Tory party introducing more and more complicated and penalising tax changes, the latest of which, announced only three weeks ago, will do little to restore confidence.”
But he also tore into Labour advocating even harsher taxation policies and saying it will constrain new investment in an industry which “has been fundamental to the UK economy, and particularly to the Scottish economy, for as long as I have been working for it.”
He continued: “All of this is having a damaging and totally illogical impact on a business essential to Scotland, to the UK Treasury, to UK security and the economy, and fundamental to the changing energy scene.
“The UK is fortunate to have the resources of the North Sea, be it oil and gas, wind energy or wave energy.
“It is essential, for the country to benefit, that government provides a stable and supportive backdrop to ensure that all these resources are managed responsibly and that companies, like Serica, who have the technical skills and experience offshore are encouraged to harness and optimise the benefits for everyone.
The UK is fortunate to have the resources of the North Sea, be it oil and gas, wind energy or wave energy.”
“There are ways of doing this but it needs a far better informed, more enlightened and, dare I say it, braver and longer term approach from government and the powers that be if the opportunity and the vital supply chain for offshore projects are not to be snuffed out and critical infrastructure protected.”
The skill sets, entrepreneurial capabilities and confidence of UK-based North Sea companies are being “severely hampered” by three waves of tax changes in a year, he said.
‘Significant negative impact’
Mr Craven Walker added: “This is forecast as having a very significant negative impact on the industry, which is largely based in Scotland and the north-east, with potentially negative long- term effects for those areas.”
David Latin, a member of Serica’s top team since 2021, has taken over as chairman.
