New Oil & Gas Industry Long-Term Plans.

The First Minister, Alex Salmond, has today revealed that he plans to put forward a long-term plan for Scotland's oil and gas industry, which to date is the largest industry sector in the UK. The industry contributes a fifth of UK corporation tax, and supports 440'000 UK-wide jobs. So it is vital that a long-term strategy is made to secure its future so it is a viable industry for Scotland, especially in the case of independence.

Although much speculation has been drawn to the viability of Scotland's oil industry by our unionist friends, there is still no doubt that the industry is a thriving one and has contributed much more to the Scottish economy than anything else has in recent years.

The industry has been functioning for the best part of 40 years now and has pumped an estimated 40 billion BOE (barrels of oil equivalent) worth approximately £300 billion in terms of revenue, into the London exchequer. Whilst some may think the oil fields are drying up, there is still an estimated £1.5 trillion value of revenue still to be found in Scotland's geographical share of the oil fields. That figure has risen since the last estimate of £1.2 trillion. The UK-wide debt stands at £1 trillion, to which our share of the debt would be £100 billion.

Out-with the UK, the government is also investing heavily in securing investment from foreign markets. The organisation Scottish Development International (SDI) is to be expected to invest in growing markets in such areas as, Norway, Brasil & West Africa. The investment in those areas is to be built on the success of the establishment of an SDI base in Calgary, Canada.

What this proves is that Scotland, as a whole. Does have the potential to be an international leader in the markets we pursue, forget the arguments that we are too wee and too poor to possibly compete with larger nations around the world. All it takes is motivation and ingenuity, a trait which the Scottish people have shown their fair share of throughout history.

Under the current status quo however, Scotland is very limited in its ability to invest in our industries, with our constantly shrinking budget provided by Westminster. Some may say that it is the budget we receive which keeps our economy afloat. The reality however is the complete opposite, Scotland contributes £50 billion a year into the exchequer in terms of tax and revenues, yet we only receive on average, £23 billion back each year. 

The plan aims to further the astronomical success delivered by our North Sea oil revenues, and to secure a future for the industry when new fields are discovered. The plan draws up six main points that need to be addressed:

* Strengthen domestic supply chain - with greater focus on resource recovery and targeting £30 billion in total annual sales by 2020;

* Increase proportion of sales from exports - so international activity, having risen from 31 to 46 per cent from 2002 to 2010, reaches 60 per cent (£18 billion) by 2020;

* Identify clear priorities for innovation and accelerating technology deployment - including long-term research & development plan and greater co-ordination of public funds to support rise in recovery rates with a minimum long-term target of 50 per cent;

* Promote new and emerging opportunities for supply chain companies - for example in offshore wind, carbon capture & storage (CCS) and decommissioning;

* Ensure sector attracts young people and supports increase in skills availability - emphasising long-term nature of industry and, through closer liaison between sector employers and with education institutions, better-identify specific needs for provision;

* Continue to promote Scotland as key location for O&G investment - through communications and support for key infrastructure projects.