UK Government urged to help oil industry
ANAS Sarwar yesterday called on the UK Government to “take a stake” in the North Sea oil industry to prevent further job losses.
The Scottish Labour leadership hopeful opened the door to the nationalisation of key strategic oil and gas assets to ensure production in future years.
The move comes after Labour’s shadow chancellor John McDonnell outlined a programme of mass nationalisation being planned if Labour win power.
Figures this month revealed the British oil and gas industry is still shedding thousands of jobs despite the partial recovery in the oil price.
Several major firms have sold stakes in the region this year in search of more profitable fields elsewhere.
There are also fears over a lack of capital investment – with only three oilfields approved since 2016.
Sarwar yesterday recommended the setting up of a new UK oil public body to identify which assets should be supported with public investment.
He said state intervention should be considered if infrastructure such as hub platforms and pipeline networks are in danger of early decommissioning, or if there are no alternative sources of capital to invest in the asset.
Sarwar added: “I want the next UK Labour government to take a strategic stake in the North Sea to allow production to continue and prevent further job losses.”