The Scotsman

Oil rigs ‘migrating’ away from North Sea

- By NEIL POORAN newsdeskts@scotsman.com

Drilling rigs and other equipment are "migrating" away from the North Sea and other European fields for opportunit­ies elsewhere in the world, a trade group has said.

The North Sea chapter of the Internatio­nal Associatio­n of Drilling Contractor­s (IADC) called on the UK and Scottish government­s as well as the offshore industry to co-operate better with each other.

The IADC said a longer-term outlook was needed to secure a transition to clean energy.

The organisati­on said recently announced drilling opportunit­ies represent only a "fraction" of what is needed to meet energy demand in the UK.

IADC regional director Stuart Clow said: "The North Sea continues to be a significan­t source of the UK'S energy supply, and drilling contractor­s are ready to work with operators and government to ensure that supply is not interrupte­d.

"The experience, knowledge and ingenuity of workers from the far north of Scotland to the south of England is driving the energy transition in a similar way that generation­s before them built the oil and gas industry into the crucial economic driver it has become.

"We are already seeing a migration of drilling rigs and equipment to other areas of the world which in turn reduces drilling and decommissi­oning capability in the North Sea and other areas.

"Data shows more than 30 jack-up rigs have migrated from Asia, the Americas and

Europe to the Middle East over the past year.

"That is partly why encouragin­g business, responsibl­y developing all forms of energy and supporting the offshore supply chain in the North Sea are of the utmost importance."

The IADC'S North Sea chairman Darren Sutherland said: "The recently announced projects represent a fraction of what is truly needed to meet growing UK energy demands, as well as strengthen regional energy security, but frustratin­gly only amounts to minimal opportunit­ies for drilling contractor­s.

"The oil and gas industry is aware of the environmen­tal need to change the way the sector operates, however it is a process that is likely to take decades to achieve and will involve all areas of industry, including drilling contractor­s. The transition to cleaner energy has to be done safely, sensibly and securely in terms of the national economy, national energy supply and protection of jobs across the UK."

A poll published last month had shown the vast majority of Scots want all oil and gas used in the UK to come from its own North Sea fields.

A survey by Aberdeen-based advisory firm True North found 87 per cent of people in Scotland think the UK should aim to meet its demand for petroleum from domestic production.

Other findings suggest more than half of those polled (56 per cent) believe that energy companies operating in the North Sea have a positive impact on the UK economy.

The poll was carried out by Survation, with 1,002 people aged 16 and over interviewe­d online across January 10 to 12.

Calls have been renewed for the windfall tax on oil and gas companies to be increased Shell last week recorded the highest profit in its 115-year history as it benefited from soaring energy prices.

 ?? ?? ↑ A transition to cleaner energy is driving change
↑ A transition to cleaner energy is driving change

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