Members of the Scottish National Party (SNP) are urging the UK government to use this money to reinvest in the industry,
Following the resurgence in the North Sea oil and gas sector, that is predicted to generate over £1 billion in taxes for the Treasury, members of the Scottish National Party (SNP) are urging the UK government to use this money to reinvest in the industry.
Recent forecasts from Oil and Gas UK reflect the significant turnaround in the North Sea industry and has subsequently sparked demands to reinvest capital into the offshore industry in order to “protect against future downturns”.
The first nine months of the 2017/18 fiscal year saw North Sea production generate £814 million in tax, according to HM Revenue and Customs, with Oil and Gas UK predicting these figures will reach just beyond £1 billion for the full year results, assuming the final quarter reflect the rest of the year.
As a result of these figures, the SNP’s Gillian Martin, MSP for Aberdeenshire East, has urged the UK government to reinvest the capital gained in order to secure industry jobs in the future.
Martin said: “This is excellent news and further evidence of the strength of the North Sea oil and gas industry as it continues to recover from the recent downturn.
“But this cash boost must not just go straight to the Treasury coffers and never be seen again by the industry or by Scottish communities.
“The oil and gas industry needs continued support from the UK Government in order to protect against future downturns – and the industry should
see a return on the revenue it is generating through appropriate levels of reinvestment in the sector, to protect jobs across Scotland.
“Better still, they could devolve full control over the oil and gas industry, including revenues, to Scotland, and allow the Scottish Government to take the action needed to maximise jobs and return from our energy sector.”
As prices climb, oil majors and the UK government are becoming increasingly committed to the resources in the North Sea, with Claire Perry recently announcing she wants to recover “every last drop” of economically viable oil from the North Sea.