Scotland Acquires Onshore Licensing Powers

The Scottish government acquired powers over onshore petroleum licensing from February 9, when the UK government said the ‘Scotland Act 2016’ gave Edinburgh the right to grant and regulate oil and gas exploration and production licences.

Even before securing this right the Edinburgh government said October 3 2017 it would not support the development of unconventional petroleum in Scotland, effectively banning fracking in Scotland. Conventional oil and gas upstream activity there though is marginal. In contrast, much of the production from the UK North Sea comes from Scottish waters, as does all production in the newer West of Shetlands producing region.

Powers over offshore licensing in all UK waters belong to the UK government in London, and oil and gas revenues (taxes and licence fees) from both Scottish and English waters in the North Sea are also paid to the UK government. People in Scotland voted by a margin of 55% for, 45% against, remaining in the UK during a 2014 independence referendum.