An “unprecedented” declaration has been signed by five former UK and Scottish government ministers urging support for the oil and gas industry.
The cross-party quintet signed the statement at Aberdeen’s new south harbour today.
Ex-Scottish energy minister and current SNP MSP Fergus Ewing and Amber Rudd, the former Conservative UK energy secretary put pen to paper at the event, organised by trade body Offshore Energies UK (OEUK).
They were joined by Liberal Democrat MP and former Scottish secretary Alistair Carmichael, along with former UK energy ministers Charles Hendry (Conservative) and Brian Wilson (Labour).
The high-powered group called for an end to “polarised” views that North Sea oil and gas and net-zero goals are irreconcilable, as well as support for the sector in the energy transition.
Mr Hendry said the North Sea and decarbonisation were “two sides of the same coin” while Mr Ewing said the skills and resources of oil and gas were crucial to emissions-busting technology like carbon capture and storage.
Mr Wilson told a press conference the cross-party declaration was aimed at tackling incorrect and “damaging views” that renewables and the North Sea oil and gas sector were in opposition.
He added: “The consequence of taking the polarised view is one that we destroy jobs, we destroy businesses and we destroy opportunities in the world to be a leader, and at the same time, crazily, become more dependent on imports.”
Ms Rudd added: “There are all sorts of new technologies as part of the transition agreement that can be harnessed and are being harnessed, with proper investment in order to do that.
“It’s not – it never should be – one or the other. We need the support for the oil and gas industry to deliver on that transition, and we need to acknowledge that and work together.”
Scottish strategy
The Scottish Government, led by the SNP-Green alliance, is due to publish a revamped energy strategy in the autumn.
Today’s oil and gas declaration makes a series of asks, including support for the industry as it goes through the “just transition” in alignment with the North Sea Transition Deal signed last year, setting a net-zero target of 2050 for the industry.
Asked whether the politicians were seeking support for 30 more years of oil and gas, Mr Ewing said: “In order to achieve net-zero, we have to have a thriving oil and gas sector”.
He pointed to higher imports of liquefied natural gas and other impacts if North Sea production is ramped down.
The MSP for Inverness and Nairn added: “If we stop producing gas here, our carbon footprint as a country becomes far greater.
“If that is true, as no one has disputed, the only sensible thing to do is to carry on with our production.”
Windfall tax
OEUK chief executive Deirdre Michie said the declaration was “music to our ears” for the industry but the windfall tax announced by Chancellor Rishi Sunak last month had undermined investment.
Mr Ewing agreed a “stable” investment regime “is essential – a prerequisite – for the scale of investment that’s required”.
Mr Carmichael said similar measures were discussed several times during his ministerial tenure.
The serving MP for Orkney and Shetland added: “This is certainly the third time in my parliamentary career we’ve been around this course.
“The lessons I would take from the two previous experiences is that partnership and dialogue between industry and government is absolutely critical.”
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