THE worth of oil and gasoline extracted from the North Sea jumped by nearly a fifth final 12 months, regardless of a dip in manufacturing and an extra hunch in funding.
The newest official figures from the Scottish Government reported the gross sales worth was £20bn in 2017/18, up 18.2 per cent on the earlier 12 months, because of rising oil costs.
However the underlying knowledge was much less optimistic, with Scottish manufacturing down 1.7% to 73.7m tonnes, and capital expenditure down 25.four% to £5.8bn, the bottom determine since 2009.
Capital expenditure, which incorporates exploration and the price of appraisal wells drilled previous to improvement approval, has now fallen by greater than 20% for 3 consecutive years.
The annual oil and gasoline manufacturing statistics put this all the way down to the wave of improvement capital which started in 2010/11 persevering with to “tail off”.
The Scottish Government stated that, regardless of final 12 months’s dip, manufacturing of oil and gasoline remained 23.1% increased than the extent recorded in 2014/15, earlier than the worth tumbled.
Scottish oil and gasoline manufacturing was 81% of the UK whole, down from 82% in 2016/17.
SNP power minister Paul Wheelhouse welcomed the findings and stated they added to different current proof exhibiting a return of confidence to the sector.
He stated: The business faces persevering with challenges, together with points round exploration, and the Scottish Government will proceed to do what we are able to to assist the sector.
“However, the UK Government retains a lot of the key coverage levers affecting the offshore sector, so we’ll proceed to argue they need to carry ahead measures to rebuild exploration exercise and to maximise financial restoration, whereas additionally offering a right away enhance to the provision chain.”
Labour MSP Lewis Macdonald stated: “It is welcome the business is starting to get better from the darkish days of 2014 and 2015, however these figures reaffirm simply how fragile that restoration is. “Exploration is on the lowest degree for the reason that business started in 1965, whereas the continued fall in capital expenditure suggests corporations are reluctant to spend money on and create North Sea property.
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“That is clearly a critical trigger for concern, with capital expenditure now at nearly a 3rd of the extent it was simply 4 years in the past when the SNP was claiming Scotland may very well be a land of milk and honey on the again of oil revenues. The North Sea might have a shiny future, but it surely requires larger assist from the each the SNP and Tory governments.”
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