Hansard

In June, I had a members’ business debate on oil and gas taxation. It was a constructive debate, which was handled constructively by all parties across the chamber. It is good to see that I appear to have set the tone for oil and gas debates in the Parliament this session—long may that continue.

I agree with much that has been said by all members in today’s debate thus far. Lewis Macdonald rightly referred to some of the tragedies that have taken place in the North Sea. One of the fatalities in the recent Super Puma crash, Stuart Wood from Newmachar, was in the year below me at Dyce academy and played in the school football team with me, so the issue affects many people in my peer group, with whom I grew up. I note that the report on that crash is due out soon and I have no doubt that lessons will be learned in the industry.

I agree with the minister that it is important to focus on the positives and to look forward. The Scottish Government has been engaged constructively and, I hope, productively with the UK Government on the taxation regime in the North Sea. Although one would undoubtedly have hoped that the previous decision would have been taken following slightly more consultation with the industry, one hopes that, moving forward, there will be a period of consultation, which would help to alleviate concerns in the industry caused by some last-gasp decision making. I hope that the UK Government’s ears are open to that argument when the minister makes it to them.

I agree that there is a need to address skills gaps. In particular, Oil & Gas UK has highlighted to me that a gap exists in the middle between those who are graduate entrants or young entrants into the industry and those who are coming to the brink of retirement. One of the reasons why that gap exists is a subconscious mood out there that somehow the industry did not have a future. The short-termism that often defined the way in which the oil and gas industry was talked about led people to consider that it was perhaps not an attractive industry to move into. That has created something of a problem and a requirement for the gap to be filled.

The oil and gas industry advisory group has identified six priorities, one of which is skills. That is extremely important. I note that the PWC report refers to the work by, for example, Talisman and Wood Group in offering university scholarships. Indeed, the report encourages other companies in the sector to consider moving down a similar route.

Along with a number of other members, I attended the launch of Professor Alex Kemp’s worthy tome on the history of North Sea oil and gas. [Interruption.] Bless you, Ms Boyack. It was interesting to note, in the course of that evening, how many of the students on Professor Kemp’s course come from other areas of the world, where oil and gas sectors are seen as a long-term prospect, and how few people from the locale were on the course. We must do more to encourage people to believe that this is an industry that they can go into and that it will not decline within 10 to 25 years, as was so often the mantra.

I welcome the shift in focus that has taken place, which is constructive. Had some of our opponents’ political predecessors perhaps had the foresight to talk up the longevity of the industry to the same extent, some of the problems might not have arisen.

We had a discussion earlier today on female employment. OPITO produced a report that suggests that there has been an increase in the number of females being attracted to work in the oil and gas industry, which has often been viewed as very masculine and macho.

Work has been done, for example by Aberdeen College and the sector, to try to provide places for people from Kinloss and Lossiemouth, who are leaving the Ministry of Defence, on the drilling transformation training programme that is planned at Aberdeen College. The Prince’s Trust has also worked on developing a new basic entry programme for unemployed and disadvantaged workers. The industry has undertaken all that positive work, which we should welcome.

I am pleased that Mr Brown was able to clarify that the Tory amendment does not seek to disregard the PricewaterhouseCoopers report in its entirety, because there is much in that report that is worthy and to be commended. The report identifies that up to 24 billion barrels of oil could be extracted from the UK continental shelf. In fact, there is some discussion in the oil industry about whether that estimate could be increased depending on further investment and exploration. The west of Shetland fields, for example, could generate upwards of $600 billion in the next 40 years alone.

The report states that contrary to the view that North Sea production is in terminal decline, the outlook for the oil and gas industry in Aberdeen is positive. There is a wealth of exciting opportunities that will enable Aberdeen to continue prospering, through utilising new technology to extend the life of existing fields or through developing incremental reserves or greenfield sites. I am sure that my fellow members for the north-east and Aberdeen welcome, as I do, that analysis and the industry’s positive vision for the future of Aberdeen. I accept entirely the chancellor’s contention that investment is taking place. That is evident from BP, TAQA and Premier Oil, from the recent announcement from Talisman Energy and Wood Group and from the acquisition of ExxonMobil assets by Apache.

At the same time, though, there is a real need to focus in on the brownfield and marginal sites, which are the ones that are most affected by the tax changes. That is why I hope that the constructive discussions that are taking place will result in something a little better in the future.

A simple equation is that skills development depends on investment and investment depends on confidence. I am pleased that it appears that there will be no more short-termism and no more talking down the future prospects of the industry. Parliament should unite to say that oil and gas has a robust and optimistic future. The issue must be handled carefully. I know that the Scottish Government and the minister will be working to ensure that the next 40 to 50 years are handled better than the previous 40 years.

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