Exclusive:North Sea boss urges SNP to give 'full-throated support' to new drilling amid conference split over energy
John Swinney’s government has been urged to be more explicit in its support for specific North Sea oil and gas projects like Rosebank and Jackdaw.
The head of the North Sea oil and gas sector has called on the SNP to give its “full-throated support” for new drilling as the party braces fora split over its position on fossil fuels.
David Whitehouse, the CEO of influential industry body Offshore Energies UK (OEUK) made the comments to The Scotsman ahead of a row poised to erupt at SNP conference in Aberdeen over the future of oil and gas.
Speaking in Aberdeen, Mr Whitehouse argued that the SNP and wider Scottish Parliament supporting the industry should be more forthright about supporting domestic industries.
It comes as the industry piles pressure on Prime Minister Andy Burnham, who will undertake his first major visit to Scotland today, to bring forward reforms to the controversial energy profits levy to help unlock investment in the North Sea, for both fossil fuels and renewables.
READ MORE: Andy Burnham faces early crucial oil and gas test that will define his leadership in Scotland
Mr Whitehouse told The Scotsman that politicians are recognising that “the world is different to where we were a number of years ago”, as the geopolitical landscape has thrown energy security to the top of the agenda.
He added: “That doesn't mean to say, we want to take our eye off climate action.
“But it does say where things are made and who makes them is more important, the resilience of both Scotland and the wider UK I think is critical.
“That's why I think there does need to be a focus on supporting our own industries.”
Asked specifically what he would like to see from John Swinney’s government, Mr Whitehouse said: “What we would look for from the Scottish government, I think, is more full-throated support.
“That basically says the projects that are coming forward - it is important that they are part of Scotland's resilience, Scotland's security.
“Actually, because they support the very companies and supply chain we need for the wider transition, they're actually part of Scotland's climate action.”
He added: “In the world we're in, it makes no sense to import diesel and jet fuel made from Russian crude oil while not supporting our own industries, and we need to change that.
“This isn't an argument against climate action, but it is an argument that says it's important that Scotland has resilient interests.”
The SNP conference will today debate a contentious motion on oil and gas, with activists set to be split over how much support the party will give the industry.
A motion tabled by SNP energy secretary Stephen Gethins, Aberdeen Central MSP Jack Middleton and Arbroath and Broughty Ferry MP Lara Bird will demand that “all further income from oil and gas resources taken by the UK Treasury is placed in a future generations fund that will grow Scotland’s renewables industry”.
It adds that the tax receipts “support the communities who have generated hundreds of billions of pounds in taxation for Westminster, and strengthen the supply chain to ensure ongoing investment and job creation in Scotland”.
The motion adds that “the global energy landscape has evolved significantly in recent years, with geopolitical developments such as the ongoing impact of Russia’s war in Ukraine and the crisis in the Middle East causing extreme volatility and risks to energy supplies and prices”.
It states: “The utilisation of domestic production, reviewed by climate compatibility assessments, is clearly preferable to importation, where international imports have a bigger carbon footprint.”
But a stark amendment, tabled by the SNP trade union group, calls on “the Scottish government to call upon the UK government to increase profit levies on fossil fuel extractors and on polluting industries to match the social cost of the pollution caused by these activities”.
It adds: “If the UK government will not do this, the Scottish government should explore any and all devolved powers such as land taxes, a land and buildings transaction tax, new environmental levies, or individual wealth taxes as well as non-tax powers such as planning permission and public procurement to the same effect.”
READ MORE: Andy Burnham urged to use 'pivotal' Budget to hand North Sea oil and gas an investment future
Mr Swinney has maintained a position of support for the principle of new oil and gas developments if climate compatibility tests can be met - the position put forward by Boris Johnson’s government.
But the Scottish government has not published a full energy strategy since 2017, while a draft version of a new blueprint in 2023 proposed a presumption against new oil and gas licences being awarded.
But some MSPs, including Mr Middleton, have been more explicit in his support for the Rosebank oil and Jackdaw gas developments being given the green light by the UK government.
Mr Middleton, argued that the Scottish government’s energy strategy must “recognise that we are in a very precarious, dangerous world right now”.
He added: “Our energy security, our energy demands need to reflect that.
“We need to prioritise using our domestic resources over foreign imports right now. Gas supplies are running dangerously low, right now.”
READ MORE: Why Grangemouth's green fuels blueprint has stalled amid fears of 'irreversible industrial decline'
Scottish Conservative leader, Russell Findlay, said: “We constantly hear John Swinney spouting his opinions on a vast range of reserved matters, yet he refuses to say if he backs new North Sea drilling.
“Whether he thinks Rosebank and Jackdaw should proceed is a very simple question, but he won’t give a straight answer.
“And that’s because the SNP are sacrificing Scotland’s oil and gas workers to cosy up to their extremist Green pals.”
He added: “Instead of focusing on fixing Scotland’s many problems, the SNP conference will fixate on breaking up the United Kingdom.
“And having peddled a big lie about Scots losing their pensions, Swinney is unable to say how pensions would be paid in an independent Scotland.
“All he has to offer the people of Scotland is dishonesty, division and distraction.”
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