Study highlights importance of £100m oil and gas sector to the Highlands and Islands
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New research by OGUK, the leading representative body for the UK’s offshore oil and gas industry, has revealed that the oil and gas industry contributes £112 million Gross Value Added (GVA) to the Highlands and Islands economy, providing jobs for 900 people across the region.
OGUK say these latest figures reinforce the importance of achieving a just transition for the communities across Scotland where the oil and gas industry plays an important role to the local economy.
The findings for the Highlands and Islands region are reflected on a national scale, particularly the Aberdeen region as one of the UK’s major hubs for the industry. The sector supports a total of 71,500 jobs across Scotland, representing 33 per cent of all oil and gas jobs in the UK – both directly and across the supply chain. This is expected to generate £19.44 billion in GVA for Scotland (equivalent to around 12 per cent of total Scottish GDP).
Jenny Stanning, OGUK’s external relations director, said: “This latest report highlights the important role that the oil and gas industry plays in the economy of the Highlands and Islands region, especially areas such as Orkney.
"As the industry and energy landscape changes, places that have an entrenched history in the energy industry can use their skills and experience to position themselves as key players in the transition - bringing economic and employment opportunities to the region.”
Orkney is one place in the region that already has a reputation for being at the forefront of many different aspects of the UK energy mix.
Global energy consultancy Xodus, which has a team of environment and renewable consultants based in Orkney, has a track record of delivering offshore projects and has used its expertise to support a range of offshore wind projects – including one of the bids for a site west of Orkney in the soon to be announced ScotWind leasing round.
Liz Foubister, renewables consenting technical authority at Xodus, commented: “Significant work is required to support both onshore planning and offshore consenting processes, and using local knowledge and resources can help ensure these projects are designed and executed with the local community in mind.
"These projects can result in several direct opportunities for the region, including strengthening the existing local supply chain in Orkney – which has a long history of servicing the offshore energy industry.”
The research, conducted by Experian, found that within the UK as a whole, the oil and gas industry contributes £31 billion GVA, supporting almost 200,000 jobs across the country.
