Petroleum industry in Aberdeen

The petroleum industry in Aberdeen, the third most populous city in Scotland, began in the mid-20th century following the discovery of significant oil deposits in the North Sea. Aberdeen has been characterised as the "oil capital" of Scotland, the United Kingdom, as well as Europe as a whole.[1][2][3]

Aberdeen boasts the primary main heliport for the offshore North Sea oil and gas industry at Aberdeen Airport. Aberdeen Harbour is an important port for offshore oil rigs. The number of jobs created by the energy industry in and around Aberdeen has been estimated at half a million.[citation needed] Owing to the natural decline in North Sea oil reserves, the local and national government have worked to promote the growth of the renewable energy in Aberdeen, including the wind energy sector.[4]

History

20th century

1986 photo of oil boats in Aberdeen

Beginning in the 1970s, Aberdeen began its transition from a city dominated by the fishing industry to one dominated by the petroleum industry. According to The New York Times, the Aberdeen oil industry's success can be partially credited to its role in developing undersea technology for offshore drilling.[5]

The most severe disaster to occur in the region took place in 1988, when the city was dealt a heavy blow by the loss of 167 men during an explosion and fire aboard an offshore rig, the Piper Alpha. It remains the world's worst offshore disaster and there is a memorial to the crew in Hazlehead Park.

21st century

While reserves continue to flow fast, it has been estimated that the North Sea is nearing or has even surpassed its peak production rate. As a result, Aberdeen is expected to have to redevelop itself as a research and development hub, rather than a base for offshore drilling, in order to remain home to the multi-national companies that drive its economy. In 2006, the large training centre[6] began operating in Aberdeen, training specialists in the oil and gas sector.

As of 2013, despite declining North Sea reserves, Aberdeen remained a major world center for undersea petroleum technology.[7] In 2014, the global plunge in oil prices caused economic distress in Aberdeen.[8] Russell Borthwick, a local chamber of commerce executive, argued the oil plunge was a turning point for the local industry, stating it was a "wake-up call that Aberdeen actually needed to say, 'This ain't going to be around forever'".[9]

According to the Financial Times in 2023, workers in Aberdeen's oil industry are on average paid £88,000, a salary higher than the Scottish average of £29,000.[1]

Future of the industry

In 2021, Scottish businessman Ian Wood noted that crude oil production in Aberdeen now totals at just over a third of its peak of 4.5 million barrels a day (B/D). This number is projected to decrease to 400,000 B/D by the year 2050.[10] To emphasize the growth of the city's renewable energy sector, there have been local political attempts to transform Aberdeen's reputation from the "Oil Capital of Europe" into the "Energy Capital of Europe".[11]

Photo from 2019 of oil and gas ships

References

  1. ^ a b Mnyanda, Lukanyo; Dickie, Mure (9 April 2023). "In Scotland's oil and gas capital, uncertainty clouds the green transition". Financial Times. Retrieved 10 November 2023.
  2. ^ Harvey, Fiona (24 March 2023). "UK planning to launch watered down net zero strategy in oil capital Aberdeen". The Guardian. ISSN 0261-3077. Retrieved 10 November 2023.
  3. ^ Mathiesen, Karl (3 June 2022). "Greens and rig workers call a truce in Europe's oil capital". POLITICO. Retrieved 10 November 2023.
  4. ^ Wall, Tom (9 June 2023). "From North Sea revival to renewables, Aberdeen sees corporate interests triumph". The Guardian. ISSN 0261-3077. Retrieved 11 November 2023.
  5. ^ Reed, Stanley (29 July 2013). "Aberdeen, With a Foot on the Seafloor". The New York Times. Retrieved 10 November 2023.
  6. ^ Services, 3t Training. "Aberdeen Training Centre". 3t Training Services. Retrieved 26 November 2024.{{cite web}}: CS1 maint: numeric names: authors list (link)
  7. ^ Stanley Reed (28 July 2013). "Aberdeen, a City With One Foot on the Seafloor". The New York Times. Retrieved 29 August 2013.
  8. ^ "UK's oil capital Aberdeen reels from global price slump". Reuters. 13 November 2015. Retrieved 10 November 2023.
  9. ^ Horowitz, Julia (30 October 2021). "Here to stay or gone in 30 years? Inside the fight over the future of the oil industry | CNN Business". CNN. Retrieved 11 November 2023.
  10. ^ Elliott, Larry (1 November 2021). "The road to net zero: Aberdeen looks to a future without oil". The Guardian. ISSN 0261-3077. Retrieved 11 November 2023.
  11. ^ Arnold, James (12 November 2003). "A burst of energy in Europe's oil capital". BBC News Online.