SNP calls for greater investment in oil extraction

The SNP has called on the UK Government to invest more money in North Sea oil and gas extraction, after Sir Ian Wood urged the industry “not to panic” in the face of collapsing prices.

With brent crude prices still slumped at under $30 a barrel, BP this week announced the loss of 600 roles from its North Sea operations.

Wood told Energy Voice: “It’s not the time to throw our hands up in horror and say the world is coming to an end”.

“It’s going to get better. Aberdeen will start spending again, but the next nine to 12 months will be hard. We’re going to have to stay cool, keep thinking, keep acting and reacting.”

Reacting to Wood’s comments, MSP Mark McDonald said: “The SNP can absolutely support his [Wood’s] suggestion of new ‘sensible measures’ from the UK government – especially on incentivising exploration and development of new prospects to protect North Sea jobs and sustain a vital industry.”

McDonald said the industry needs “positive action, not sympathy or disdain”.

He added: “Even the Tory Prime Minister seemed to shrug off the difficulties faced by the sector in parliament yesterday”.

McDonald’s comments come a week after SNP MSP Dennis Robertson attracted criticism for claiming “there is no crisis” in the North Sea oil and gas industry, saying, “we have just actually extracted more oil than ever before in the North Sea”.

Robertson later said he could have expressed himself more effectively and apologised for “any misunderstanding” caused by his comments.

Faced with questioning on the falling oil price during PMQs, David Cameron said: “I think a low oil price basically is good for the British economy, as an economy that is a substantial manufacturing and production economy.”

He added that, “we need to look very carefully at how we can help our own oil and gas industry.”