Shetland boost could create 600 jobs

 

© The Herald Originally published: 28/1/2010

The biggest boost to the North Sea oil and gas industry for years could create up to 600 jobs and produce a total investment of £14 billion.

The Chancellor’s tax relief for each oil and gas field in the West of Shetland is Government recognition that industry needs to be encouraged to explore the remaining areas of Britain’s oil fields.

According to the International Energy Agency, world energy demand is forecast to increase by 50% from 2005 to 2030, with oil and gas meeting 54% of demand at that time.

Here in the UK, Government figures suggest that we will continue to rely on oil and gas for 70% of our energy needs in 2020.

The supply of oil and gas is directly related to the amount of capital injected.

Production from our own fields has the potential to satisfy 65% of our oil and a quarter of our gas demand in 2020, provided the UK can attract the investment required to sustain new exploration, development and production activity.

Importantly, to avoid a new round of oil price increases caused by tight supply in future, investment must be sustained during periods of low as well as high prices.

The benefits of indigenous oil and gas production to the UK economy are not confined to the provision of primary energy; they range from tax revenues to jobs, from technological expertise and innovation to exports.

In the journey towards a sustainable energy future, the UK needs to make the most of its home-grown oil and gas and to do this, it must be perceived as an attractive place in which to invest.