Today’s announcement by BP that they will be cutting jobs in North East Scotland as a result of falling oil prices is a real blow for the local economy.
The news is a wake up call to supporters of independence who based their economic plans on Oil.
Oil prices are out of the hands of the Scottish and UK governments and is far too unstable to rely on for a major part of a country’s economy.
Falling oil prices are seen as a net positive for the overall UK economy that can weather the impact. It is however a massive blow for North East Scotland that the SNP Government has underfunded for many years. It puts a massive hole in the SNP’s plans for independence and shows that Scottish voters were right to reject their inflated promises.
North East Scotland needs to transition quickly to renewable energy where with on shore and off shore wind we have substantial resources and the price is far more stable and predictable. Oil and Gas will be a major per of the local economy for years to come but this news shows that the future is renewables and that we should invest now before we are forced to by shrinking oil reserves and volatile prices.