Swinney softens domestic oil and gas stance in light of Middle East crisis

Scotland’s First Minister has softened his Government’s position on domestic oil and gas drilling as energy prices are soaring amid the crisis in the Middle East.

SNP-led governments in recent years have been cautious about further drilling in the North Sea, despite pressure from the industry and opposition parties, but speaking at a live recording of the Holyrood Sources podcast, the First Minister appeared to change his stance following the blocking of the Strait of Hormuz.

The First Minister faced questions on pushing forward with approvals for the controversial Rosebank and Jackdaw oil fields in the North Sea, suggesting that the situation in the Middle East has changed the circumstances surrounding domestic energy production.

His party has pushed for “climate compatibility tests” on new oil and gas licences in recent years, but part of those tests, he said on Wednesday, should include energy security.

Calum Macdonald, First Minister John Swinney and former head of communications for the Scottish Conservative Party Andy Maciver taking part in the Holyrood Sources podcast PA Media

“There’s been much greater uncertainty about energy security as a result of what I would consider to be an illegal intervention in Iran and all the chaos that’s been created as a consequence,” he said.

“So I think the dynamics of that chance as a consequence.

“I can’t give you a definitive answer on Jackdaw and Rosebank, because the climate compatibility assessment has got to be undertaken…

“What I’m saying to you is I think we’ve got to look at the geo-political situation that we now face and recognise that we are experiencing much greater risk to our energy security as a consequence of what’s happening there.”

The First Minister said he was “wholly committed” to renewable energy, but added that there would need to be oil and gas for years to come.

However, importing hydrocarbons would be more carbon intensive and subject to international shocks.

“I think that context changes the balance of argument,” he said.

“What we’ve always said in all of our communications about oil and gas is that there must be a climate compatibility assessment undertaken… and secondly, we must be very, very mindful of the issues on security of supply, which is now in a more perilous position than if we were having this conversation four weeks ago.”

If the domestic oil and gas, the First Minister said, would be less carbon intensive than importing from other countries, then “we should prefer domestic production over imported production”.