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Ian McConnell: Much at stake for North Sea and Scotland as huge decisions loom Much is at stake, not just with this project but with many other decisions that will have a very major bearing on future activity in the North Sea

6 4
06.03.2025

No one should be surprised about the sharp focus on the Labour Government’s attitude towards the North Sea, and the welter of headlines around this.

Labour has come across, to put it mildly, as unfriendly towards the oil and gas sector, which is so important to Scotland.

Labour was swift to declare its position of not issuing new oil and gas licences to explore new fields.

And it did not take long after winning power on July 4 last year to make it crystal clear that it was going to raise the energy profits levy - the so-called windfall tax - to 38%.

Given this backdrop, it is hardly a surprise that the sector has found itself at the centre of intense political debate.

There is understandably a greatly increased focus on the environmental impact of the oil and gas sector, given the need to tackle climate change urgently.

However, it is crucial to realise the energy transition is just that. It is not something that is going to happen overnight.

In this regard, without taking a view on whether it is right or wrong, Labour’s move against exploration of new fields in the North Sea is certainly up for debate.

And we must not lose sight of the huge economic contribution of the North Sea sector and associated supply chain, and of the crucial employment provided.

Furthermore, there are environmental arguments against over-reliance on energy imports that must not get lost amid the furore.

There are many complexities. And, in short, there is a need to take a holistic view of the energy transition.

It is certainly not something that should become a political football although, if the matter were not so serious, that statement would be almost laughable given the degree to which President Donald Trump has ridden a coach and horses through such a concept in the US with his “drill, baby, drill”........

© Herald Scotland