Question reference: S5W-30657
- Asked by: Tom Mason, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 13 July 2020
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Current status: Answered by Paul Wheelhouse on 11 August 2020
Question
To ask the Scottish Government what consideration it has given to additional support for the oil and gas sector, in light of low oil prices caused by the COVID-19 pandemic.
Answer
The oil and gas sector in Scotland continues to be significantly affected by the impact of the COVID-19 pandemic and the decrease in oil prices. The Scottish Government are working with a range of partners to consider how short, medium and long term needs can be addressed.
We have committed, in line with industry’s asks of us, to invest £62 million in an Energy Transition Fund to support businesses in the oil, gas and energy sectors to grow and diversify and make significant progress on an energy transition as we move towards a net zero greenhouse gas emissions future. This fund will, we understand, potentially help lever in a total of more that £900 million investment, if the Sector Deal is supported by UK Ministers, as I anticipate it will be.
The investment will benefit the wider Scottish energy sector and broader supply chain, working with local businesses to maximise the economic benefits, support sustainable jobs and contribute to inclusive economic growth across the country. This fund was developed in consultation with the industry and we will continue to engage with the sector on projects as we go forward.
The Oil and Gas, and Energy Transition Strategic Leadership Group, which I chair, has also been refocused and is now meeting monthly and working with OGUK, OGA, trade unions and employers to identify practical actions to support the sector and its supply chain. In addition to an additional exceptional meeting held on 2 nd of April, four subsequent meetings of the refocused group have now been held, which have focused on the retention of talent and skills in the sector as well as projects and actions to support the recovery of the sector and the energy transition. These discussions have helped to inform the development of the Energy Transition Fund. The most recent meeting focused on development of support packages for the supply chain.
The Scottish Government will continue to engage with the UK Government and key stakeholders to ensure there continues to be a tripartite approach to supporting the oil and gas sector, including on the delivery of a sector deal.