Industry group publishes oil and gas strategy for 2016-20

The Oil & Gas Industry Leadership Group (O&G ILG) has published a refreshed oil and gas strategy for 2016-20.

The Group, co-chaired by Scottish Government business minister Fergus Ewing and oil and gas specialist Melfort Campbell, calls for for a transformed supply chain to drive efficiency, innovation and internationalisation to ensure a long and vibrant future for the sector.

It has been developed in response to the challenging operating environment caused by the low oil price, a changing commercial and regulatory environment and a maturing North Sea basin with international competition.

It aims to develop the oil and gas industry supply chain in Scotland, deliver a global top three position in terms of innovation and technology development, and gain worldwide recognition for Scotland as having ‘centres of excellence’ in areas such as subsea, asset integrity, digital offshore and decommissioning.

Supported by Scottish Enterprise and the Energy Jobs Taskforce, the ILG developed the strategy in consultation with trade bodies, operators, contractors, SMEs and other stakeholders.

To support the strategy, a progress report will be tabled at each meeting of the ILG setting out progress and milestones.

Mr Ewing said: “While it is clear that the oil and gas industry faces severe challenges from a low global oil price, there are still opportunities that Scotland can capture from new discoveries and through our world-class supply chain.

“The First Minister visited Aberdeen last week to announce funding of £24.5 million – part of a £400 million package of support for the North East - to boost research and development, kick-start innovation projects and help industry workers develop new skills.

“This strategy, which we committed to refresh in our most recent Programme for Government, builds on these themes, supporting the industry to maintain it global position and to drive forward the changes required to increase growth in international and supply chain sales and production efficiency. I also look forward to seeing the Oil and Gas Technology Centre develop and grow into a world class R&D hub.

“With 22 billion barrels of oil & gas remaining, the sector can still have a strong future. This will require a concerted effort from everyone – industry, governments and the Oil & Gas Authority - and this refreshed strategy sets out a clear path for all to follow.”