Oil and gas sector supports over 64,000 jobs in North East Scotland

New research has revealed that the oil and gas industry contributes £18.2bn Gross Value Added (GVA) to the economy of North East Scotland, providing jobs for 64,400 people across the region.

By Kevin McRoberts
Wednesday, 1st September 2021, 8:17 am
The vast majority of Scotland’s economic benefits and jobs from the oil and gas sector have been in the North East of Scotland
The vast majority of Scotland’s economic benefits and jobs from the oil and gas sector have been in the North East of Scotland

These latest figures – produced by OGUK, the leading representative body for the UK’s offshore oil and gas industry – reinforce Scotland, and the North-east in particular, as one of the UK’s major hubs for the oil and gas sector.

With the sector creating a total of 71,500 jobs across Scotland, this represents one third of all oil and gas jobs in the UK – both directly and across the supply chain.

This is expected to generate £19.44bn in GVA for Scotland (equivalent to around 12 per cent of total Scottish GDP).

Beyond the hub in the North East of Scotland, this total figure also represents thousands of professional service and engineering jobs in Scotland’s major cities.

Many of these jobs are either directly or indirectly involved in helping move the UK towards a low carbon future, developing homegrown cleaner energy and reducing reliance on imported oil and gas.

Jenny Stanning, OGUK’s External Affairs Director, said: “This latest report highlights the enormous role that the oil and gas industry plays in Scotland’s economy, and especially in Aberdeen and Aberdeenshire.

”As the industry and energy landscape changes, the North East of Scotland will play a critical role in helping the Scottish and UK Government meet their ambitions of being net zero by 2045 and 2050, respectively.

"This will also bring economic and employment opportunities to the region.”

The innovative Scottish Cluster project will be critical in enabling and accelerating low-carbon hydrogen deployment in Scotland, using carbon capture technology.

The Cluster will repurpose oil and gas infrastructure, and between 2025 and 2030, use a number of locations for carbon capture, including SSE and Equinor’s Peterhead Carbon Capture Power Station.

The project could start supporting jobs as early as 2022 and is expected to deliver 20,600 jobs for the region over the next decade.

Stephen Flynn, MP for Aberdeen South said, said the figures reinforced the fact that oil and gas remained an intrinsic part of the local economy – providing thousands of high-quality jobs and huge economic benefits.

He added: “As we move towards Net Zero, every effort must be made to ensure that we secure a fair transition that protects both local employment and our local economy.”

The research, conducted by Experian, found that across the UK as a whole, the oil and gas industry contributes £31 billion GVA, supporting almost 200,000 jobs.