Chamber and committees

The oil and gas industry remains a critical component of the Scottish economy, with oil and gas extraction alone worth £8.8 billion in GVA (5% of GDP) to the Scottish economy in 2019. The industry estimate that in total it supported employment of 101,400 in Scotland in 2018 through direct, indirect and induced effects. The industry also has a crucial role to play in the energy transition required to move to an economy and society that generates net zero greenhouse gas emissions.

The Scottish Government has launched a £62 million Energy Transition Fund which will support businesses in the oil, gas and energy sectors to grow and diversify and will help to attract private sector investment. This investment, which it is hoped will be part of an overall investment package of more than £900 million across public and private investment, is a direct response to requests for support from industry stakeholders and in line with calls from within the Oil and Gas and Energy Transition Strategic Leadership Group for support from both the Scottish and UK Governments. The Fund will support and develop sustainable jobs and contribute to inclusive economic growth across the country, in areas such as hydrogen, carbon capture utilisation and storage and decarbonisation of production through electrification, e.g. through developing offshore wind to power installations.

Most recently the Advisory Group on Economic Recovery have published their recommendations on ensuring the transition towards a greener, net-zero and wellbeing economy as Scotland’s economy recovers from the pandemic, which will now be considered in detail by the Scottish Government and partners.

The Scottish Government will also continue to work closely with the UK Government, which retains many of the key powers and levers needed to support the sector, including delivery of an oil and gas sector deal.