Has John Swinney just downgraded energy and oil and gas sector from his government’s priorities?
The First Minister has been signalling a shift in his position towards the energy sector and the future of oil and gas for months. But his Cabinet appointments may have revealed how he really feels.
The SNP has had a presumption against new oil and gas drilling in the North Sea despite intense pressure from the industry.
But during the Holyrood election campaign, he signalled that position had softened because of the ongoing conflict in Iran, with the Strait of Hormuz still blocked, causing fuel prices to skyrocket.
While he did not state whether he specifically backed Rosebank or Jackdaw oil fields, he said energy security – or insecurity – should be considered when approving these licences.
That gave many in the industry hope – although decisions on more drilling are reserved for Westminster.
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In the last term of the Scottish Parliament, energy was a portfolio handled by a Cabinet Secretary. Most recently, Gillian Martin was in charge of the brief.
However, it was announced on Wednesday she will now cover Climate Action and Rural Affairs, while her junior minister Jim Fairlie is tasked with agriculture, marine and the islands.
Energy has instead been given to Stephen Gethins, but as a junior ministerial role alongside Europe and external affairs.
It will be overseen by the First Minister directly after he pledged during the election that a vote for the SNP was a vote for cheaper energy bills.
This ministerial decision, which ties energy directly to independence and re-joining the European Union, is interesting.
There remains deep disagreement over the future of Scotland’s energy: oil and gas or renewables and hydrogen?
The problem Swinney now faces is it looks like the Energy brief has been downgraded.
A senior Scottish Government source told me this was not the case, arguing that putting Gethins in charge showed just how seriously the issue was being taken.
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Gethins, a former MP, was a special adviser to former first ministers Alex Salmond and Nicola Sturgeon, advising on energy, among other key issues.
It’s early days, of course, but the government needs to get ahead of this and clarify whether it really does value the energy sector, or whether, as some believe, this is a backslide.
David Whitehouse, the chief executive of the Offshore Energies UK (OEUK), said the energy industry was at a “critical moment”, as he warned Mr Swinney that an energy strategy had to be published in the first 100 days of the new administration.
There has been no commitment, yet, on whether this will be forthcoming, with a government spokesperson stating ministers "have only just been appointed”.
“Without clear, consistent policy, we risk losing investment, jobs and industrial capability at a critical moment,” Mr Whitehouse said.
“Closures at Grangemouth and Mossmorran show what is at stake. Scottish support for Scottish industry matters.”
OEUK’s Scotland manifesto is proposing the refreshed energy strategy should favour ongoing access to homegrown oil and gas.
With a by-election on the horizon in Aberdeen South, the pressure is going to be on Mr Swinney and the SNP. If they can’t give assurances or concrete answers, it could hurt the SNP, and more importantly, the industry.
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