North-east economy will not decline as oil and gas production falls – Matheson

The Energy Secretary has denied there will be an economic decline in the north east of Scotland as oil and gas production falls.

Michael Matheson was speaking after the launch of his new energy strategy on Tuesday.

The document set out the Scottish Government’s goal of expanding renewable energy as oil and gas production in the North Sea is expected to “effectively end” in the next 20 years.

He said the Government is consulting on whether there should be a presumption against new drilling.

Speaking to journalists on Wednesday, Mr Matheson was asked if the north east is set for economic decline.

He replied “No”, and added: “There is going to be a decline, a significant decline, over the course of the next 20 years in oil and gas output within the North Sea.

“That’s just the facts of the situation.

“The danger is that if we don’t manage that transition properly, we create the same economic difficulties that were created in the 80s when we saw the closure of coal mines and the damage that caused for many generations.

“The critical thing is about managing that process, and making sure we ramp up the speed at which we deploy renewables in order to provide that alternative employment opportunity.”

The minister also said he disagrees with comments from Aberdeen’s Chamber of Commerce that his strategy represents a “betrayal” of North Sea workers.

The strategy says 77,000 jobs in low-carbon energy are expected to be created by 2050 in Scotland, up from around 19,000 in 2019.

Offshore licensing is reserved to the UK Government, but Mr Matheson said the Scottish Government has policy levers around renewables and reducing demand.

Mr Matheson was also asked if SNP Westminster leader Stephen Flynn – the MP for Aberdeen South – had been shown the strategy ahead of publication.

The minister said he had “engaged with the Westminster group” on the strategy.