This article is published in response to the BBC’s Business/Economy Editor for Scotland, Douglas Fraser’s article, “Call for urgent changes in oil and gas industry” published on Monday 13th June 2016.
Whilst the thrust of this article is I’m sure based on fact, facts of course that haven’t really been shared, surely it states the obvious?
The UK North Sea oil business has had some highly profitable years and yes investment is now needed. The UK is in the unique position of having a homegrown successful oil and gas business, and this will perhaps become more important in a future outside of Europe. The UK Government should of course look to those who have massively profiteered during the last oil boom. Surely these companies should be forced to reinvest in assets they have enjoyed huge profits from, rather than just now looking to the Government and indeed tax payer when the same have suffered at the hands of incredibly high energy costs for years.
That said, is it then time to nationalise this industry, is it time to take back what is historically perhaps the UK’s shining jewel from foreign ownership? I would say no. I would incentivise some to invest and penalise some who wont. There is an opportunity as well to fix a cost right now for those with the foresight to see an industry coming back to life, and reward them for investment right now. Probably the headline is all that makes real sense in this article, as yes urgent changes are required, and they are required for consideration by people who really know what is needed. Maybe the Government should right now look at investing in an industry think tank, and paying real money to people who really understand what may be needed, an investment that could pay massive dividends very soon… and perhaps in a post-EU vision.