Research showing huge reserves of oil and gas west of the Shetland Isles exposes the “utter madness” of banning new drilling, Kemi Badenoch says.
A study from the University of Aberdeen suggested there is the equivalent of 4.7 billion barrels of oil in the West of Shetland basin alone. The paper called for the area, which includes the Rosebank oil field, to be afforded special tax status to encourage investment.
Tory leader Ms Badenoch said her party would scrap the windfall tax, which sees North Sea operators pay a total of 78 per cent on profits, and allow new drilling.
She is due to visit an oil and gas employer in Aberdeen today, along with Scottish Conservative leader, Russell Findlay, and Douglas Lumsden – the Conservative candidate for the Aberdeen South by-election.
She said that the offshore sector was losing 1000 jobs a month and accused both Labour and the SNP of waging a “war on oil and gas”.
The by-election was triggered when SNP MP Stephen Flynn vacated the seat after being elected to the Scottish Parliament.
Energy has taken centre stage in campaigning. Scotland’s First Minister, John Swinney, has called for Holyrood to be given control of Scottish energy.
He has claimed that only the SNP can “protect the world-class oil and gas sector we have today and build another world-class renewables industry right by its side”.
Kemi Badenoch said the offshore sector was losing 1000 jobs a month
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He has said that the SNP would permit “sensible licensing decisions” to be taken on new energy projects.
But Ms Badenoch said: “It defies belief that Labour and the SNP won’t drill our own oil and gas in the North Sea when independent reports have found there are billions of barrels lying untapped.
“The University of Aberdeen survey just demonstrates the utter madness of the stance taken by Keir Starmer and John Swinney.
“Domestic oil and gas are vital to the nation’s energy security, as well as being the economic lifeblood of the North East.
Kemi Badenoch is due to visit an oil and gas employer in Aberdeen today, along with Aberdeen South by-election candidate Douglas Lumsden
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“Yet the industry is on its knees due to the windfall tax and the ban on new developments. The Conservatives would scrap both immediately.
“The Aberdeen South by-election is a referendum on the future of oil and gas – and voters know that the Conservatives will always have workers’ backs.
“Only Douglas Lumsden, who worked in the oil and gas industry, can beat the SNP. By voting for Douglas, voters can send a clear message to the Nationalists and Labour that their war on oil and gas must end.”
Mr Findlay said: “It will be great welcoming Kemi back to the North East, where people know she’s a champion of our oil and gas sector, which is on life support due to Labour and SNP opposition to new drilling.
“This by-election is a golden opportunity for people in Aberdeen South to oppose this idiotic economic self-harm.”
The Government has said that, wherever oil and gas comes from, the price is set on the international market.
Responding to the Aberdeen university research, a spokesman said: “Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.
“The lesson of yet another fossil fuel crisis is the UK needs to get off the fossil fuel rollercoaster and onto clean homegrown power we control.”
It is understood there are no plans for a tailored tax framework for the West of Shetland area.
Richard Thomson, SNP candidate for Aberdeen South, said: “The Tories’ legacy in Aberdeen is thousands of oil and gas jobs lost thanks to the Tories’ tax on our energy.“
By putting Scotland’s energy in Scotland’s hands, we can take sensible licensing decisions based on Scotland’s needs with energy security, jobs and net-zero compatibility being part of that consideration.
“Cleary we should prioritise domestic supply over carbon intensive imports and we should never find ourselves weakening sanctions on Russian oil like Westminster has done.
“Just like the Reform party, the Tories couldn’t care less about our oil and gas industry, they care about milking every last penny out of it without investing anything back – £400 billion has been syphoned off by these crooks in Westminster and only the SNP would use our vast energy wealth to protect Scottish jobs and build a wealthier, independent, country.”
A UK Government spokesman also said: “Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.“The lesson of yet another fossil fuel crisis is the UK needs to get off the fossil fuel rollercoaster and onto clean homegrown power we control.”