Oil industry stages ‘fragile’ recovery

The sales value of oil and gas produced in Scottish waters has risen by almost a fifth in the past year to around £20 billion, despite a dip in output.

Official statistics show the approximate oil and gas sales value has increased by 18.2 per cent between 2016/17 and 2017/18, from around £17 billion to £20 billion. At the same time, output has dropped from 75 million tonnes of oil equivalent to 73.7 - down 1.7 per cent but sales value has not suffered due to the increased international price of oil and gas.

Production in Scotland accounted for 81 per cent of the UK total, down from 82 per cent the previous year which marked an 18-year high.

Energy Minister Paul Wheelhouse said the increased sales value show “confidence is continuing to return to the sector”.

Labour’s Energy spokesperson Lewis Macdonald welcomed the recovery from the “dark days” of 2014 and 2015.