Britain Warns Scots: Independence would Hurt Energy Industry

MarineLink.com
Tuesday, April 08, 2014

Britain on Tuesday warned Scots that voting for independence would put jobs and investment in the Scottish energy industry at risk, threatening the commercial viability of North Sea oil and gas fields and renewable energy projects.

In September Scotland will hold an referendum on whether to sever its 307-year tie with England, with Scottish nationalists arguing that a split would give them greater economic freedom.

The British government wants to keep the union intact and has produced a series of analysis papers arguing its case on issues such as the currency, security and finance.

The latest paper, due to be released on Wednesday, will say that independence would deter investment in low-carbon renewable energy and make it unprofitable for firms to extract increasingly hard-to-reach oil and gas in the seas off Scotland.

"I fear the economic and energy progress will be seriously affected by the uncertainty and disruption of independence, as investors will hold onto their cash rather than risk it," Energy Secretary Ed Davey said ahead of the report's release.

A government briefing note said that Britain's wide tax base meant it could afford to offer incentives which made it profitable for firms to tap into dwindling oil and gas reserves, generating investment and creating thousands of jobs.

It also said Scotland accounted for 10 percent of electricity sales in Britain, but received 28 percent of consumer-funded subsidies that support renewable energy.

"The reality of independence is that Scottish low carbon energy is unlikely to be able to rely on the current levels of financial support provided by all U.K. energy bill payers," the briefing note said.

The government also warned that an independent Scotland would have to compete with other countries to sell electricity into England and Wales.

Speaking earlier on Tuesday Alex Salmond, the pro-independence leader of the Scottish National Party, said Scotland was the most energy-rich nation in the European Union on a per-head basis.

"Independence would give responsibility for Scotland's natural resources to the people who are most likely to harness them wisely - the people who live and work in Scotland," he said.

"It would allow us to adopt policies which meet our priorities and specialisms. That would benefit Scotland, and it would also benefit our energy industry."

(Reporting by William James and Karolin Schaps; Editing by Robin Pomeroy)

Maritime Reporter February 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Government Update

PHA Budgets $ 275 mi for Capital Improvements

In 2015, the Port of Houston Authority has budgeted $275 million for various capital improvement projects. About $184 million is being allocated to its container

Shippers Must Monitor Greek Government Changes

Moore Stephens says shipping must monitor developments in wake of Greek government change   International accountant and shipping adviser Moore Stephens says

USCG Updates Rules for Arrival/Departure Notices, AIS

Final rule on vessel requirements for Notices of Arrival and Departure and Automatic Identification System published in Federal Register   U.S. Coast Guard (USCG)

Offshore Energy

BOEM Issues Supplemental Environmental Impact Statement

The U.S. Department of the Interior, Bureau of Ocean Energy Management (BOEM), announces the availability of the Draft Supplemental Environmental Impact Statement

Europe's Offshore Wind Capacity Growing

New capacity edges down 5 pct from record 2013; industry body forecasts stable growth over 2015/6. Europe's offshore wind capacity kept up a steady rate of growth

Shell: UK Should Reduce North Sea Oil Tax

The British government should review a supplementary tax charge on North Sea oil producers as it has made the operation of some fields unrealistic, Shell Chief

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1635 sec (6 req/sec)