North Sea investors ‘may be put off by new poll’
SCOTLAND’S oil and gas sector has a current value of around £44 billion, but with another potential independence referendum looming “the outlook is not encouraging”, a global energy group has warned.
Leading consultancy specialists Wood Mackenzie said the industry is facing a halving of investment in the next three years, but faced tens of billions worth of decommissioning obligations over the coming years.
It said despite the North Sea sector making progress on costs and efficiency since the last independence referendum in 2014, the political uncertainty following the push for a new poll could deter investors from committing to new projects.
The group said the sector was currently in the best position for investment it had been for a couple of years, but that fresh cash was needed for new explorations, particularly west of Sheltand.
The report comes days after the chairman of the SNP’s Growth Commission, which is updating the party’s independence offer, admitted oil revenues were wrongly described as a “bonus” in the 2014 referendum, instead of a “basis” of the economy, supplying around 12 per cent of national income.
Wood Mackenzie’s report states new challenges had emerged over the past 30 months including weaker oil prices and a lack of new discoveries and development projects. It said: “It is clear