Capital investment in North Sea oil and gas plunges for the second year in a row

TOM GORDON

prices boosted the sector in other ways.

Official statistics showed oil production stagnant in 2016/17 but gas production up 8.8 per cent, meaning the oil and gas sector as a whole grew 2.9 per cent to 74.7 million tonnes.

Because of a recent upturn in the price of crude, the value of sales was up 15.2 per cent to £17.5 billion, with production in Scotland accounting for 82 per cent of the UK total.

However capital investment was down 20.5 per cent, from £10.1bn to £8bn.

The data emerged as Nicola Sturgeon visited Aberdeen for the final meeting of the Energy Jobs Taskforce, which was set up in 2015 to help the north east cope with the oil price slump. It is being wound up after helping 800 companies and 4,200 people facing redundancy.

Its work will now be absorbed into the Oil and Gas Industry Leadership Group co-chaired by Energy Minister Paul Wheelhouse.

The Government said that under the taskforce spending on oil and gas innovation almost trebled last year, with £15.9m from Scottish Enterprise for 82 firms and 111 projects.

The First Minister said: “It has made a vital contribution to strengthening the oil and gas sector, laying the foundation for a positive future for the North Sea economy. With employment levels beginning to stabilise, the signs of improvement are encouraging.

“However, I fully appreciate that challenges remain and we will continue to work with industry to ensure the recovery is sustained.”