A new report from the Scottish Government has indicated towards growth in the oil and gas sector, despite fears of a no-Brexit deal, which could double trade costs across the industry.
Oil and gas production increased by 2.9% in Scotland between 2016-2017, with third quarter sales revenues approaching pre-2014 levels.
The latest State of the Economy report, by Scottish Government chief economist Gary Gillespie, shows a cut of 50% in production costs, down from $30 a barrel to $15, which is due to improvements in efficiency across the sector and have “contributed to positive revenue growth in 2016-17”, according to the report.
However, a number of issues remain within the sector and Brexit will be a key issue. The report highlights the concern of the World Trade Organisation rules, which means if no deal is made, costs of the trade would rise to £1.2 billion – twice that of 2016.
Economy Secretary Keith Brown said: “It is encouraging to see further evidence that the foundations of Scotland’s economy remain strong, with positive forecasts on growth. However, growth is slower than we would like to see and the UK Government’s stance on Brexit continues to present a huge threat to jobs and prosperity in Scotland.”