New Oil Boom Coming to Scotland

Chancellor Alistair Darling announced tax breaks for the oil and gas industry yesterday that could trigger new investment of £14billion before the end of the decade.

The UK Government is to give the £1billion-plus tax boost to help kick-start production in remote gas fields west of Shetland – the last major area around Britain still to be developed.

The move will not only pave the way for massive new investment but is also expected to lead to the creation of 600 jobs and significant spin-offs for Scottish oil-service businesses.

In a second boost for the oil and gas industry yesterday, UK Energy Minister Lord Hunt revealed that a record acreage would be up for grabs in the 26th offshore licensing round.

Mr Darling said he was rushing through approval of the £160million-per-field relief before his spring Budget to avoid another summer season passing before work could start on the pipelines, oil and gas-gathering facilities and other infrastructure needed for Total’s Lagan and Tormore fields.

Half a dozen other fields in the area may be linked up to produce up to 4billion barrels of oil or equivalent – 17% of the Britain’s remaining oil reserves.

At last some good news for the north. Now if they would just sort out that mess at Nigg the area might start to feel some benefit. Of course somebody should also sort out the National Grid.

There’s absolutely no excuse for making electricity more expensive in the north when they want most of the stuff to come from here.