OPPORTUNITY NORTH EAST – Oil & Gas
Maximising economic recovery of oil and gas from the UKCS is a key objective of the UK and Scottish governments and provides an opportunity for North East Scotland to be a long term global centre of excellence for oil and gas operations and technology development.
Working closely with industry bodies and drawing upon the extensive experience that has been gained from the UKCS over the last 40 years, the ONE Oil and Gas sector board is focused on maximising the benefits of the North Sea to the region through innovation, internationalisation, training and learning. Our projects support organisations producing the innovative technologies and the best people, to help generate worldwide demand for services and expertise.
Core to establishing Aberdeen as a globally recognised technology base is the new Oil & Gas Technology Centre (The OGTC). ONE took the lead in developing The OGTC from concept through to full business case within the Aberdeen City Region Deal framework, in partnership with Scottish Enterprise, universities, councils and governments. The OGTC was established as a standalone entity in September 2016, with the aim of creating a global centre of technology development and knowledge in mature basin technology and decommissioning, and in establishing oil and gas as a long-term industry in the region post the North Sea. It will go a long way to help drive efficiency, improve competitiveness and add value for the sector as a whole. This will help anchor the supply chain in the long-term, grow exports globally and extend the region’s position as a centre of excellence for oil and gas post the life of the UKCS.
We are also working on other opportunities. Through our universities, college and training companies, the region has a very strong academic and training sector that should be able to grow both at home and internationally with the objective of creating a global centre for offshore oil and gas learning and training. There is also potential to continue to build up the region’s successful supply chain and double the current £4.5bn exports per annum in Scotland. Emerging markets, such as decommissioning, carbon capture and storage, wind and marine renewables all provide new opportunities for our region.
In 2014, direct energy sector employment was 72,000 in Scotland and 41,900 in North East Scotland. Total Scottish based oil and gas supply chain sales stood at £15.2bn, comprising £10.7bn domestic sales and £4.5bn export sales.* A declining global oil price has had a significant impact on commercial activity in the UKCS and in particular North East Scotland. A clear priority in the short-term for all stakeholders is to maximise economic recovery in the UKCS. By harnessing the region’s innovative heritage, we have the opportunity to extend the life of the UKCS for many years to come. This will have major positive implications for employment and our economy.
*Source: Scottish Enterprise and Scottish Government
ONE’s oil and gas sector board comprises:
Sir Ian Wood GBE
chair of Industry Leadership Group & IMES Group
Paul de Leeuw
Robert Gordon University Oil & Gas Institute
Aberdeen Harbour Board
Oil & Gas Authority
Aberdeen Institute of Energy, University of Aberdeen
Oil & Gas UK
North East Scotland College
Our ambition is that north east Scotland remains a major economic driver for Scotland and the UK