Scotland's Economy

Bank of Scotland: 39,000 jobs to be created in the oil & gas sector during the next two years

Written by Michael Gray

falklands-oil_2276943bThe oil & gas sector is booming with opportunities to create up to 39,000 new jobs over the next two years, according to new research from Bank of Scotland.

A survey of a broad cross section of 100 oil & gas companies, carried out for the bank’s third-annual report on the sector, suggests expectations of job creation have increased by 5,000 since last year, when it was expected the sector would deliver 34,000 new jobs.

Stuart White, Bank of Scotland Commercial area director said:

“The findings of this report are excellent news for the economy demonstrating the employment generating nature of the oil and gas industry now and in the future. With most of the UK’s oil and gas firms clustered in Aberdeen and the North-east, Scotland should reap the largest share of these new jobs, however other parts of the UK will benefit from expansion plans.”

Contrary to Westminster’s attempts to play down the value of Scotland’s offshore revenues, these findings confirm that the North Sea is a significant growth sector. Investment in new fields is at an all time high.

Kenny Anderson, Managing Director of Anderson Construction and Business for Scotland Aberdeen, was interviewed on Good Morning Scotland today. (see recording below)

The image below illustrates significant new developments, as well as recent discoveries. The vast majority of these discoveries sit within Scotland’s maritime boundaries, and explain why the Bank of Scotland expect further growth to focus on Aberdeen.

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An independent Scotland would receive over 90% of total tax revenue in future decades.

The remaining oil in the North Sea is worth over £1 trillion, with at least 15-24 billion barrels of oil remaining which will continue long into the 21st century. This presents the opportunity to establish a national energy fund for future investment. Norway’s fund is now worth over $840 billion.

These figures do not include the opportunities of future discoveries. Business for Scotland explained the potential for a West coast oil boom that is currently blocked by Westminster. Survey requests in the Firth of Clyde were blocked by Westminster following complaints by the Ministry of Defence that oil production in the Firth would cause problems for Trident nuclear missiles. For this reason independence has the potential to revitalise the economies of Ayrshire and the Strathclyde region as a whole.

Sir Ian Wood’s report into the industry suggested that an expansion in the industry could add £200 billion to the economy.

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About the author

Michael Gray

Michael is Head of Research with Business for Scotland.

A graduate from the University of Glasgow, he has carried out a series of interviews with academics, politicians and the public in Denmark, Iceland and Ireland. Michael's on twitter @GrayInGlasgow.

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