Keith Brown: North Sea ‘can have bright future’ – BBC News

Image copyright PA

Scotland’s brand-new economy secretary has spokened the nation’s oil and gas market can have a brilliant future regardless of the current recession in its fortunes.

But Keith Brown will require higher assistance for the sector as he fulfills essential market figures in Aberdeen.

North Sea companies have actually been severely struck by a continual duration of low oil rates, with 10s of countless tasks lost.

Mr Brown will spoken a collective effort is had to get rid of the “significant obstacles”.

He will be associateded with by Scottish Energy Minister Paul Wheelhouse for the check out to Aberdeen, where he will satisfy agents of oil and gas companies Nexen and EnQuest, along with trade unions, market body Oil and Gas UK and regulatory authority the Oil and Gas Authority.

Economic levers

Speaking ahead of the go to, Mr Brown stated: “The Scottish federal government highly thinks that the North Sea oil and gas sector can have a brilliant future for several years to come.

“Given the substantial difficulties dealt with by market, this will need a collective effort by all stakeholders and today’s go to will assist me to play as strong a function as possible because procedure.”

Mr Brown stated the Scottish federal government was doing everything in its power to support the market, however that the UK federal government kept the majority of the vital financial levers influencing the sector.

He highlighted exactly what he referred to as an absence of development to utilizing the UK Guarantees Scheme for oil and gas facilities where it might assist protect brand-new financial investment in possessions of tactical value.

He spokened the UK federal government made the dedication in the Budget in March.

Mr Brown stated: “Sustaining vital facilities in the North Sea is an essential top priority and the UK federal government need to act rapidly and decisively to provide this dedication.

“The oil and gas market is a vital part of the Scottish economy and the slump has actually had a substantial influence on the market and its labor force.”

‘Competitive and ingenious’

The North Sea contributed 10.9 bn to the Treasury simply 5 years earlier.

But previously this month, HMRC spokened the UK federal government had sustained a loss from North Sea oil and gas video production for the very first time because records started almost 50 years earlier.

Speaking at the time, the UK federal government’s Scottish Secretary, David Mundell, stated it was doing everything it might to support the North Sea market to “end up being competitive and ingenious on a worldwide scale.”

He included: “No other federal government has actually supported their market so thoroughly.

“We have actually developed the Oil and Gas Authority to drive higher partnership and efficiency within the market, and in the last 2 budget plans we revealed significant plans of tax steps worth 2.3 bn to guarantee the UK Continental Shelf stays an appealing location for financial investment.”

Mr Mundell has actually remained in Texas today, where he was trying to enhance assistance for the North Sea oil sector.

Meanwhile, a delegation of Scottish business is to go to Myanmar today in an effort to take advantage of chances in the south east Asian nation’s oil and gas sector.

The check out follows Myanmar opened to worldwide trade and financial investment following years of military guideline.

Read more: