What's Happening?
A recent nationwide poll conducted by Survation for True North Advisors reveals that 58% of Scottish voters support the continued development and extraction of North Sea oil and gas resources. This sentiment comes amid growing concerns over job losses,
energy security, and increased reliance on imports due to declining domestic production. The UK oil and gas sector is currently facing significant pressure from policy constraints, including the Energy Profits Levy (EPL), which was introduced in 2022 and is set to remain until 2030. The levy has been linked to reduced investment and workforce reductions in the sector. The poll also indicates that over 60% of respondents believe North Sea energy companies positively impact the UK economy.
Why It's Important?
The poll results highlight a critical public sentiment that contrasts with current UK policies, which include a ban on new exploration licenses and the EPL. This public support for domestic oil and gas production underscores the importance of energy security and economic stability, especially as the UK faces record-low levels of domestic oil and gas output. The reliance on imports not only increases lifecycle emissions but also offers limited economic benefits. The findings suggest that while there is broad support for long-term energy transition goals, there is also a strong desire to maintain domestic production to safeguard jobs and economic interests.
What's Next?
As Scotland approaches parliamentary elections later this year, the gap between public sentiment and current policy could become a significant political issue. The North Sea Transition Authority has noted that billions of barrels of recoverable resources remain in the UK continental shelf, but these are at risk without improved investment conditions. The contrast with Norway, which recently awarded new offshore licenses, may also influence future policy discussions in the UK. Stakeholders in the energy sector may push for policy adjustments to align more closely with public opinion and ensure energy security.
