The Herald, Saturday 19th April 2025.

More than half a century has passed since vast quantities of oil and gas were first discovered in Scottish waters, off our east coast. It began with American oilmen, some resplendent in Stetsons and cowboy boots, arriving in Aberdeen with a swagger, much like the pioneers of the Old West. And, just like those prospectors who sought out the “gold in them thar hills”, the rush for the black gold locked in our seabed sparked a rush and then a boom.

In the decades since, countless billions of pounds have flowed from that North Sea bounty into the pockets of successive UK Governments. But in all that time, not nearly enough thought has been given to how we lock in rewards for the long term, to ensure that our own natural resources benefit everyone who lives here, across Scotland and the rest of the UK.

There was a grim joke which used to do the rounds in the first couple of decades or so of the North Sea oil boom. Scotland, so it was said, was the only country in the history of the world to discover oil and still get poorer. It wasn’t true of course. At least not literally. But it contained enough grains of truth to speak to some of the underlying disenchantment that, while parts of the country were booming, huge swathes of it saw nothing of the wealth drilled from the North Sea.

Communities like my own, in west central Scotland – in common with others across parts of the rest of the UK – suffered the crippling effects of deindustrialisation, many of which are still being felt today, while the oil and gas wealth went elsewhere. The bounty was squandered.  So much for history. I am much more concerned about the here and now. That is because the lessons from what has happened to our North Sea oil and gas wealth have not been learned, and the same mistakes are in danger of being repeated. Scotland has huge and growing potential in the industries of the future, something I am proud to be playing my own part in when it comes to attracting green jobs to this country.  But we cannot let the ‘Green Rush’, being led by the new pioneers exploiting a new frontier, fail to deliver a just and fair transition for our communities’ future wealth and health. However, unless decisive steps are taken that is exactly what will happen, and we will indeed repeat the mistakes of the past.

As a businessperson, I am all for private enterprises and for allowing the companies and individuals who invest in exploration and development of our energy reserves to profit from those endeavors. It seems to me, however, that something has been lost along the way – something important and fundamental. Namely, the way in which our communities and country as a whole are not reaping the long-term benefits of having such an abundance of energy riches on our doorstep.

And what makes that failure even more galling is that other countries do things so much better, because they do ensure that their people have a stake in their own nation’s resources. Other countries have sovereign wealth funds, like Norway’s, which are in effect huge national pension pots. Or, like the Danish Government has recently done in relation to a green energy project which they have taken a 20 per cent stake in, they find other ways to ensure that the state and its citizens see a return.

Here, it always seems to be a different story, with cash from our resources flowing overseas and into the Treasury coffers of successive UK Governments of whichever party, with little if anything saved for the long-term. The time has come to change that.  But ensuring our communities are not left behind as they were in the past will require several things.

Firstly, we need to see a decisive rebalancing of the economy back towards one with a serious manufacturing base, supporting and creating jobs. That reindustrialisation of Scotland and the UK is badly needed – and, contrary to what some might imagine or suggest, it doesn’t mean a backwards step to the industries of the past. Instead, it involves a bold and imaginative leap forward, where the green industries of the future are fully embraced, with support from governments and the private sector. But that does not mean allowing firms to sit on valuable assets at a time when energy security is a priority and when we need investment.

Other countries are more forward-thinking in fiscal and economic policy, which means the corporate giants see them as more investable and potentially profitable.  UK Governments have not acted quickly enough to develop economic policy to give confidence to speculators that the green dream is truly worth investing in.Secondly, transitioning to a green industrial future also means making use of the huge advantages we already have, in terms of natural resources, skilled workers and existing technical capacity. The biggest untapped asset is our young people and their skills, which are not being developed quickly enough to deal with the vast opportunity that is before Scotland and the UK.

A just transition to Net Zero also means holding on to what we have, and where necessary repurposing it.  And the most glaring current example of that is the Grangemouth refinery, where hundreds of workers face the imminent prospect of being laid off with nowhere to go within the next few months. Grangemouth is a key piece of the nation’s infrastructure and our energy security, so it is vital we ensure it and facilities like it are retained for the communities and taxpayer’s benefit.

Finally, we need to ensure that the right steps are taken to safeguard the fruits of our resources to benefit the country as a whole, as so many other nations have done, whether through sovereign funds, a direct public stake in projects or other means.

At a time when we are clearly living in a new global era of protectionism, we must do more to protect ourselves.

Only then will we lay to rest the ghosts of missed opportunity which has seen far too much of our national wealth drain out of the country for the last 50 years.

View article: https://www.heraldscotland.com/politics/viewpoint/25101348.must-reindustrialise-scotland—difference/