The Scottish Government is facing calls to abandon its presumption against new oil and gas exploration, a policy introduced two ...

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The Scottish Government is facing calls to abandon its presumption against new oil and gas exploration, a policy introduced two years ago under its draft Energy Strategy and Just Transition Plan. Critics argue that the policy threatens domestic energy security while increasing reliance on carbon-intensive imports.

The Aberdeen & Grampian Chamber of Commerce has been vocal in its opposition to the stance. Chief Executive Russell Borthwick called on First Minister John Swinney to adopt a policy favouring domestic production.

“The presumption against oil and gas is disconnected from reality, as we saw last week when Centrica warned that our gas storage levels were at a dangerously low level,” Borthwick said. “Even the most optimistic projections show that hydrocarbons will remain part of the energy mix for decades—the International Energy Agency acknowledges this reality, so why is the Scottish Government burying its head in the sand?”

Impact on Jobs and Energy Security

Borthwick highlighted the significant role of oil and gas in Scotland’s economy, noting that the sector supports around 200,000 jobs across the UK, nearly half of them in Scotland.

“Accelerating the decline of North Sea oil and gas will destroy this world-class supply chain, and for what? To make a symbolic point while we continue importing oil and gas from nations with far less stringent environmental standards and a much higher global carbon toll?” he argued.

He added that the expertise of Scotland’s oil and gas workforce could be harnessed to lead the global energy transition, pointing to their ability to pioneer advancements in carbon capture, hydrogen production, and offshore wind.

“We should be leveraging the expertise of our oil and gas workforce to lead the global energy transition,” Borthwick said. “But we can’t get there by demonising the very industry that these workers and companies rely on for work.”

Political and Legal Challenges

The UK Government under Labour has mirrored Scotland’s policy by pledging to halt new oil and gas exploration licences in the North Sea. Adding to industry concerns, companies operating in the UK Continental Shelf face uncertainty from a legal challenge that could force consideration of scope three emissions—those generated by the end use of fossil fuels—when issuing licences.

Borthwick emphasised the need for stronger support from both the Scottish and UK Governments.

“We need full-throated support for our oil and gas sector from both our governments, but particularly here in Scotland, where it is such a crucial part of our economy,” he said. “The presumption against oil and gas must go and be replaced with a policy position which will deliver energy security and transition in tandem.

“If the alternative is importing oil and gas at a greater carbon cost, then we must favour domestic production.”

Speculation Over Policy Changes

There was speculation last year that John Swinney, after becoming First Minister, might overturn the presumption against new oil and gas developments introduced during Nicola Sturgeon’s tenure. However, no such changes have been made, leaving industry leaders to continue pressing for action.

Borthwick concluded by urging a balanced approach: “The same engineers who make the North Sea one of the safest and cleanest production basins in the world can pioneer the energy transition, but we must stop vilifying the industry that provides the foundation for these advancements.”

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