Scottish oil and gas sales up to £20bn despite output dip

The sales value of oil and gas produced in Scottish waters has risen by almost a fifth in the past year. Picture: Getty Images
The sales value of oil and gas produced in Scottish waters has risen by almost a fifth in the past year. Picture: Getty Images
0
Have your say

The sales value of oil and gas produced in Scottish waters has risen by almost a fifth in the past year to around £20 billion, despite a dip in output.

Official statistics show the approximate oil and gas sales value has increased by 18.2 per cent between 2016/17 and 2017/18, from around £17 billion to £20 billion.

Scottish Energy Minister Paul Wheelhouse. Picture: John Devlin

Scottish Energy Minister Paul Wheelhouse. Picture: John Devlin

At the same time, output has dropped from 75 million tonnes of oil equivalent to 73.7 - down 1.7 per cent - but sales value has not suffered due to the increased international price of oil and gas.

Scottish Energy Minister Paul Wheelhouse said the increased sales value show “confidence is continuing to return to the sector”.

Production in Scotland accounted for 81 per cent of the UK total, down from 82 per cent the previous year which marked an 18-year high.

READ MORE: Cost of UK oil and gas decommissioning drops

Operating expenditure, excluding decomissioning, on oil and gas production in Scotland has risen by almost a billion between 2016/17 and 2017/18, from £5.3 billion to an estimated £6.2 billion.

Capital expenditure has fallen by £2 billion in the same period, to £5.8 billion.

Mr Wheelhouse said: “I welcome the findings in the report which show the sector has seen an 18.2 per cent increase in sales value.

“These figures reflect the increased price of oil and gas on the global markets and show confidence is continuing to return to the sector.

“At the same time the industry faces continuing challenges, including issues around exploration, and the Scottish Government will continue to do what we can to support the sector.

“However, the UK Government retains most of the key policy levers affecting the offshore sector, so we will continue to argue they should bring forward measures to rebuild exploration activity and to maximise economic recovery, while also providing an immediate boost to the supply chain.”