From Aberdeen (IF): A call has been made for a long-term industrial development plan for Scotland’s oil and gas sector.

Scottish business group N-56 said its proposal would far exceed in scope, scale and ambition the existing strategies, business plans and similar initiatives.

However, there are so many oil and gas industry plans flying about at the moment that the average Scot will be left confused as to who and what to believe. It also remains to be seen how many of the grand ideas suggested are actually put into practice and will be of major benefit.

Count them
First we had the Wood Review on maximising recovery from the UK Continental Shelf and this was followed by the report from the independent expert oil and gas commission set up by the Scottish government. N-56, named after Scotland’s geographical location, aims to ensure that the country attains a top five position among advanced economies. This report said industry and government must develop a plan that is pragmatic, has a global focus and is designed to capitalise on Scotland’s natural advantages.

This needs to be industry-led and target orientated with the public sector focused on creating the societal changes necessary to underpin a buoyant oil and gas sector.

N-56 said existing organisations including OPITO, ITF and Scottish Enterprise already undertake world-leading work, but they and other bodies need to be given the framework and backing to greatly increase their output.

The business group stresses that the need for prompt action is obvious, as more North Sea infrastructure gets decommissioned and reserves are stranded. It adds that a range of measures are required to address challenges and take advantage of opportunities.

Among the proposals are:

*Exploration incentives: tax incentives, a better shared understanding of the basinwide geology, sharing exploration experiences and reducing drilling costs;

*Devolution of regulation and tax
powers: no matter the outcome of next month’s independence referendum, regulation and taxation powers should be devolved fully, moving responsibility for regulation and taxation closer to jobs and businesses;

*Fiscal stability: a thorough review of the taxation system and wider fiscal framework with industry to ensure that the regime is competitive and fit for purpose;

*Stimulating R&D: consideration should be given to incentivising the development and deployment of new and existing technologies to enhance recovery, extend asset life and increase production in a mature basin;

*New financing solutions: the possible establishment of a hydrocarbon investment bank which would be tasked with both a domestic and an international remit and to support exploration companies, operators and the wider supply chain;

*Attraction of HQs: operators and service companies should be incentivised to relocate corporate headquarters to Scotland; and

*Funding an industrial development plan:
a percentage of oil receipts should be ringfenced for R&D, skills development, international business expansion and other activities designed to foster economic growth.