The Press and Journal (Inverness, Highlands, and Islands)
Sir Ian warns of complacency in energy industry
Oil and gas billionaire Sir Ian Wood said the northeast has “woken up" to the challenge of transforming the region's economy.
As chairman of private sector economic development body Opportunity North East (One), Sir Ian warnedof a return to“complacency" as the oil price looked set for a modest recovery.
Speaking to an audience of almost 300 people at the Chartered Banker Institute dinner in Aberdeen last night, Sir Ian predicted the region's economy would recover from the current oil price downturn but “not to the activity levels we have seen in the UKCS in the past".
Sir Ian said One has been set up to ensure “two contrasting visions” for the region.
“The first is renaissance, which will require economic planning and development to stimulate, diversify and broaden our economy to reduce the dependence on North Sea oil.
“The second is that, as the oil price recovers, werelapse into complacency, fall back on bad habits, don’t plan and invest ahead, and in 30 to 40 years’ time we become a historical monument to the heyday of oil and gas.
“I believe we will recover from this oil price downturn, not to the activity levels we have seen in the UKCS in the past, but we should have a reasonably prosperous period through the 2020s and 2030s and that should enable a wider renaissance in our economy if we make the right investments. However, this will onlyhappenif our local authorities, business and industry interests and other initiatives with similar objectives all adopt the renaissance mind-set and participate accordingly,” said Sir Ian.
He urged the region's local authorities to focus on the development of digital infrastructure to create an attractive environment for inward investment.
Sir Ian said: “We’ve frankly had it easy in the last 40 years." He added: “Since the beginning of the oil price downturn, Aberdeen and the north east of Scotland have woken up and realised that we have a huge challenge on our hands to avoid amajor economic recession in the city in 20 to 30 years’ time, and that’s a good start.”