Oil industry in Scotland

Scotland is one of Europe's largest petroleum producers, with the discovery of North Sea oil transforming the Scottish economy.

In March 2023, the Scottish Government established the Energy System and Just Transition Independent Analysis Report, which found that the oil and gas industry in Scotland generated £16 billion in GVA in 2019 whilst it supported the employment of 57,000 people.

[9] Whilst the Scottish Government acknowledges the economic and social advantage that the discovery and extraction of oil and gas in the North Sea has on Scotland, it has also established ambitious transition targets to Net Zero emissions and have confirmed that "any further extraction and use of fossil fuels must be consistent with Scotland’s climate obligations and Just Transition commitments".

[11] The North Sea oil and gas industry contributed £35 billion to the UK economy (a little under 1% of GDP) in 2014 and is expected to decline in the coming years.

[12] The Scottish Government recognise that the North Sea "basin is mature and oil and gas production will inevitably decline".

[13] This view is in sharp contrast to recent developments in 2023, with the UK Government commissioning new oil and gas fields in the North Sea off the coast of the Shetland Isles.

Through a number of targets, the Scottish Government aim to achieve this by "commissioning and publishing independent analysis to look at the Scotland's future energy system, commissioning research and working with partners to develop carbon capture, utilisation and storage in Scotland and supporting a number of demonstration projects to develop hydrogen and hydrogen fuel cells".