The prime minister and first minister have both been urged to announce cash to bolster the north-east energy industry.
Aberdeen City Council co-leaders have written to Boris Johnson and Nicola Sturgeon warning “tens of thousands of jobs” are on the line and asking for help to refocus the regional economy on renewable energy.
Douglas Lumsden and Jenny Laing have penned the letters a day after the TWI, the US oil benchmark, slumped into negative territory for the first time in history.
The pair explained action to support industry jobs and escalate plans for an energy transition zone (ETZ) in Aberdeen was “imperative”.
Last night Mr Lumsden said: “To avoid the worst of the impending financial hardship and significant job losses, we’re calling on the UK Government and Holyrood to prepare a resilience support package for the energy industry.
“The cool down in economic activity will ensure a depression on demand and this lag, coupled with the existing oversupply, will take us well beyond the lift in Covid-19 restrictions and associated support measures.
“It is therefore vital that urgent financial assistance is arranged to ensure we retain the people and talent to support the energy transition and avoid the economic hardship ahead.”
Last month the council earmarked a site in Torry for its planned ETZ, to aid the development of renewables in the city.
Co-leader Mrs Laing added it would be an move to protect jobs and safeguard the regional economy.
Aberdeen Liberal Democrat leader Ian Yuill and SNP Aberdeen South MP Stephen Flynn, who has been campaigning for support for the industry since the beginning of last month, backed the calls.
But both were quick to criticise Mr Lumsden for taking to Twitter on Monday night to mock the economic case made for Scottish independence based on oil revenues, accusing him of “gloating” over the fall in price.
“The fact that the most senior Tory in Aberdeen even considered gloating about the continued slump in oil prices was beyond belief and a slap in the face to all those hard-working folk who have lost jobs in recent weeks,” Mr Flynn added.
Mr Yuill branded the social media post “disgraceful”, telling The P&J: “There can be no for gloating about a fall in the oil price which will undoubtedly cost people in Aberdeen their jobs.
“He should never have made the comment and should apologise now for doing so.”
Last night Mr Lumsden said the need for real help for the city was separate to any Twitter post and that he “didn’t feel he had anything to apologise for”.
Responding to the letter, a Scottish Government spokeswoman said: “The economic outlook for the oil and gas sector as a result of Covid-19 and historically low oil prices remains challenging.
“As the first minister again made clear at yesterday’s briefing, the Scottish Government is determined to use all resources and levers at our disposal to support businesses and jobs during this global public health crisis, which is why our financial support now exceeds the £2.3 billion passed on from the UK Government.
“Although oil and gas taxation and regulatory policy remains reserved to the UK Government, we continue to work closely with the UK Government and the industry to assess the gaps within the existing support packages that have been announced.
“The energy minister has held a number of strategic engagements with the sector since the onset of Covid-19, including with Oil And Gas UK, The Oil And Gas Authority and the trade unions.
“A meeting of the Scottish Government’s Oil And Gas Energy Transition Strategic Leadership Group was also convened this month to hear directly from stakeholders on the immediate and longer term challenges affecting the sector.
“A key theme throughout this engagement is the positive role that the oil and gas sector and its workforce can play in the energy transition.”
