Oil and gas here for some time, says minister amid questions over Rosebank
Figures released on Wednesday show Scotland saw £9.4 billion in revenue from the North Sea last year.
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Your support makes all the difference.Oil and gas extraction will continue “for some time”, Scotland’s Wellbeing Economy Secretary said as he was questioned about his support for a controversial oil field.
Neil Gray was speaking as Government Expenditure and Revenue Scotland (Gers) figures were published on Wednesday which show record revenue of £9.4 billion for the hydrocarbon sector in 2022-23.
The figures also show Scotland’s notional deficit dropped to 9% last year, rising to 15.1% when North Sea revenues were removed.
The Scottish Government has loudly called for an end to “unlimited extraction” in the North Sea and under Nicola Sturgeon it shifted to oppose the Cambo oil field near Shetland.
I want to see much more stringent climate compatibility checkpoints for projects like Rosebank
But despite activist calls, the current Government of First Minister Humza Yousaf has so far not opposed the much larger Rosebank oil field in the North Sea.
Asked if this is due to the substantial revenues generated by fossil fuels, Mr Gray told the PA news agency: “We recognise that oil and gas is going to be with us for some time to come.
“But we want to see much more stringent climate compatibility checks to ensure oil and gas continues to be compatible with our net-zero objectives.”
The minister added that “unlimited extraction”, which he claims would be the result of the 100 new oil and gas licences announced earlier this month by Prime Minister Rishi Sunak, is not compatible with Scotland’s climate objectives.
But he added: “Neither can we see the shutdown of the oil and gas sector prematurely, as appears to be being suggested by the Labour Party.
“We need to make sure that we have an accelerated just transition that involves those energy companies, their investment potential, but also their skilled workforce to make sure that we fully realise the opportunities both from an economic and a net-zero perspective from the renewables sector.”
Asked if he supports Rosebank, Mr Gray said it is “not a decision that I am going to have to take”, given those issues are reserved to Westminster.
Pressed on the matter, he added: “I want to see much more stringent climate compatibility checkpoints for projects like Rosebank and others that are coming forward to ensure that those projects are consistent with our net-zero climate objectives.
“We haven’t seen that from the UK Government.”
The Scottish Government has consistently said it will work towards a “just transition” away from oil and gas, but Mr Gray was unable to say when the revenue generated from renewables would match the £9.4 billion value to the Scottish purse of fossil fuels – claiming Scottish ministers are being “held back”.
He added: “We need to work with the UK Government to ensure they recognise the opportunity from a net-zero, but also from an economic, perspective, of continuing to invest in the renewables sector in the same way that they invest in the nuclear sector, which is huge.”