The Scottish Government has signalled its opposition to plans for new oil fields in the North Sea, claiming it offers no solution to the energy price crisis.
Yesterday, it emerged that Liz Truss will approve up to 130 new oil and gas drilling licences in the North Sea in one of her first major acts should she become prime minister.
The last time the government began a licensing round was in 2019, which resulted in the award of 113 licences.
In addition to pushing forward with the new licensing round, a Truss government would encourage oil and gas companies to invest in their existing sites to maximise production.
When the government announced a windfall tax on the profits of oil and gas companies this year, it included an investment allowance that handed companies 91p in tax savings for every £1 invested in the North Sea.
However, First Minister Nicola Sturgeon has shifted her party’s position on new oil and gas by shunning new drilling and further embracing renewables.
And yesterday a spokesman for the Scottish Government reiterated ministers’ opposition to drilling new oil and gas fields which “do not present a timely solution to the current energy price crisis, nor our energy security needs”.
The spokesman said: “Even once operational, the extracted fossil fuels will still be affected by the same global market forces which have contributed to the current crisis.
"In contrast, wind power is already one of the cheapest forms of electricity and our expansion plans for both on and offshore wind provides a fantastic opportunity to support an energy transition which not only delivers on our climate obligations, but which ensures a fair and just transition for the oil and gas sector and wider industry.”
The most recent Scottish tax and spend figures showing that money generated in the North Sea was a substantial driving force in reducing the country’s notional deficit and boosting tax receipts.