Shetland Marketing

You are here: Welcome to ShetlandMarketing.org » News » Investment Encouraged In Oil And Gas West of Shetland

Investment Encouraged In Oil And Gas West of Shetland

The oil industry in Shetland has had a relatively low profile of late.

However, oil continues to arrive by pipeline or shuttle tanker at the Sullom Voe Terminal in the north mainland, from where large tankers carry it to ports all around the north Atlantic. The terminal is well out of the way of most local people in the isles and few tourists have more than a glimpse of it, screened as it is by surrounding hills. Service bases in Lerwick ship supplies to offshore installations, as they've done for almost four decades.

However, Shetland may see further activity as a result of an announcement by the Chancellor of the Exchequer, Alistair Darling. If endorsed by Parliament, his measures could provide up to £160 million worth of tax relief for each gas field in the West of Shetland region that qualifies for the support. The Treasury say that the area to the west of Shetland is the last major area of the UK Continental Shelf to be developed and that infrastructure will be critical to fully unlock the gas potential of the region. It is estimated that the area contains around 20% of the UK's remaining oil and gas reserves.

Published: 01/02/2010

---