Oil and gas industry exports in Scotland reached £8.2bn for 2011-2012, according to new figures released by the Scottish Council for Development and Industry. It is the fourteenth consecutive year of the growth in the sector.
Beyond the sales of hydrocarbons, offshore equipment, construction and drilling services now account for almost half of sales around the world. Speaking at the Offshore Technology Conference in Houston, Texas, Scottish Energy Minister Fergus Ewing said:
“The Scottish Government recognises the substantial contribution that the oil and gas industry makes to our economy. We are working with the industry to continue to strengthen Scotland's position as a global leader in the sector and these figures mark further growth in this important part of our economy. There are huge opportunities open to us internationally, and we are determined to make the most of them.”
The biggest trading partner for Scotland remained North America, with sales reaching $4bn last year, an increase of 2.8 per cent. Sales to Africa came in second, growing 5.9 per cent for the year. Other growth markets are also being targeted by the industry, but according to Danny Cusick, President, Americas, Scottish Development International, North America will remain the country’s number one priority for the foreseeable future:
"While other markets such as Brazil, Africa, the Middle East and Australia are increasingly becoming international priorities for Scotland, North America remains by far our top and most important region for exports. Continued investment by oil and gas companies from the U.S. and Canada is crucial to Scotland's long-term economic growth."
Supporting nearly 200,000 jobs in Scotland, plus an estimated 24 billion barrels of oil still to be produced from the North Sea, the national government’s support for this industry will add further fuel to the Scottish independence debate. The announcement comes after first minister Alex Salmond last month tried to bolster the case for independence by predicting a mini oil boom worth £57bn in tax revenues by 2017-18, but was quickly accused of cherry picking optimistic forecasts by his opponents.
However, with this latest announcement, plus the UK government’s Department of Energy and Climate Change predicting oil prices of more than $150 a barrel by 2020, Salmond’s detractors could yet be proved wrong.