Energy Minister: Brexit Will 'Negatively Impact' North Sea Oil Sector
Brexit will “negatively impact” the ability of the North Sea’s oil and gas sector to fulfil the vision set out for the UKCS by its industry regulator, Scottish Energy Minister Paul Wheelhouse said.
The SNP MSP was responding to a question from Aberdeenshire East MSP Gillian Martin after analysis from the Robert Gordon University Oil and Gas Institute revealed the potential impact of exiting the European Union.
The assessment last month had warned Brexit could cost the oil and gas supply chain $247 million (GBP 200 million) extra per year in tariffs and export taxes.
“The findings from the Robert Gordon University Oil and Gas Institute on the impact of Brexit highlight the significant value of Scotland being a member of the European Single Market and the potential damage to Scotland’s economy from exiting the European Union,” the minister said in response to the written question by Martin.
“The report highlights that the oil and gas supply chain, which has seen revenues fall by around 30 percent during the industry downturn, could face up to GBP 200 million in additional costs per year to access international markets as a result of Brexit…This will negatively impact upon the industry’s efforts to fulfil the Oil and Gas Authority’s vision to double the share of the global supply chain market taken by Scottish and the rest of the UK supply chain enterprises,” he added.
Since 2014, more than 120,000 people across the UK have lost their jobs in the sector as a result of the downturn.
Aberdeenshire East MSP Gillian Martin emphasized that access to the single market and the free movement of people for access to skills and talent is needed.
“At a time when the sector is beginning to pick up it makes no sense as to why the UK Government would try and limit that further,” Martin said.