Economy
Survey: North Sea oil and gas industry at risk
A survey has found that the North Sea oil and gas industry could be undermined by Scottish independence, a lack of skills and rocketing rates of inflation, putting off investment and future productivity.
The 19th oil and gas survey, carried out by the Aberdeen and Grampian Chamber of Commerce, suggests that a lack of clarity in business policies could deter investment in the industry, just days after £10 billion of development were postponed, which included a £4 billion offshore wind farm.
According to the survey, hydrocarbon output fell by 14% last year and is expected to fall by a further 8.5% by the end of 2013. This will raise further questions about energy security and rising energy prices.
Kenny Panton, oil and gas partner at law firm Bond Dickinson, which funded the report said in the Guardian, “This report provides more evidence that oil and gas businesses are concerned about the lack of information.
“The main concerns that we are being approached about involve personal and corporate tax issues and fiscal policies, but a ‘yes’ vote could impact companies in a number of ways that they need to factor in to their business planning.”
The survey also found that despite the industry increasing pay and stepping up benefits, it is still struggling to find skilled staff. This also contributes to rising energy bills.
Further reading:
UK pumps £13.5bn into oil and gas to combat rapidly declining production
Claims of oil prosperity fail to note the finite nature of fossil fuels
Government promotes oil and gas investment as ‘vital for energy security’
Campaigners criticise ‘short-sighted’ government energy policy after oil boost