Port of Aberdeen oil and gas activity down 25 per cent this summer as 'lack of confidence' hits

The port’s chief executive Bob Sanguinetti said the port - “the key logistics hub for offshore energy work in the North Sea” - did not see its usual spike in activity between May and September.

He said this was because the “government doesn't seem to be supporting the oil and gas sector”.

Mr Sanguinetti told The Scotsman: “Oil and gas still represents about two thirds of our activity, two thirds of our revenue, and we've seen that reducing year on year to the tune of about 10 per cent. That's something that we've seen over the last two or three years.

“But I think what's been particularly noteworthy this year is that the oil and gas activity in the summer months, where you tend to get a spike, where companies take advantage of the good weather to crack on with project work, with safety work and so on, we just haven't seen that.

“This represents a reduction of almost a quarter of the oil and gas activity in that summer month period.”

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The Port of Aberdeen opened its £420 million second harbour in 2023. Mr Sanguinetti said the port supports 12,000 jobs.

Mr Sanguinetti said the drop was because of a “lack of confidence in the environment”. “I think the fact that the government doesn't seem to be supporting the oil and gas sector in the way that perhaps it should do [hurts],” he said.

“As far as renewables activity is concerned, that only represents 1 per cent of our revenue. So the advent of renewable activity supporting offshore wind is taking longer than we had expected. Managing that transition is really, really challenging.

“What, what we're calling for is urgent action to to create a stable environment for the world-leading home-grown oil and gas sector to continue to to thrive, whilst accelerating that deployment of offshore wind.”

He continued: “We need to see both governments, but in particular the UK government, because this is held in in London, needs to create a more stable environment for the oil and gas business to continue to to deliver in the way that it's delivered for the last 50 years.

“To meet the energy security needs of the country, the demand is not reducing. So we need to look at a review of the [energy profits levy], for example, we need to look at a review of the licensing arrangements so that it generates, it engenders confidence across the community. Because it's the revenue and the profits generated from that business that will be invested in the transition and enable that faster transition to renewables.”

Mr Sanguinetti warned that failing to act “will see a continuation of the rapid decline in oil and gas activity” and “an exodus of jobs and skills away from not just the North East of Scotland, but from the UK”.

Aberdeen South MP Stephen Flynn said: “The Port of Aberdeen is enormously important to our economy, and activity at the port is very much a bellwether for local and national economic growth.

“These stats therefore paint a picture that is stronger than any words I can possibly use. My only hope is that the Labour government finally takes notice of the impact that their decisions are having.

“Scotland’s energy sector is already world class, and we can build another by its side. But to do so we must harness the skills and expertise of those in industry – not push their jobs off the side of a cliff.”

A UK Government spokesperson said:

“We will not accept the status quo we inherited of the North Sea being in decline.

“We have taken rapid steps to deliver the next generation of good jobs for workers – up to 40,000 in Scotland - in a fair and orderly transition, including by making the biggest investment in offshore wind and carbon capture.

“Oil and gas production will be with us for decades to come, and we are working with industry to manage our existing fields for the entirety of their lifespan.”