THE POTENTIAL SOCIO-ECONOMIC IMPLICATIONS OF LICENSING THE SEA 5 AREA A REPORT for the DEPARTMENT OF TRADE AND INDUSTRY by MACKAY CONSULTANTS June 2004 CONTENTS Section 1 : Introduction 2 : DTI scenarios 3 : The society and economy of the SEA 5 area 4 : Existing facilities and activity in the area 5 : Implications for oil and gas production and reserves 6 : Implications for capital, operating and decommissioning expenditure 7 : Implications for existing facilities 8 : Implications for employment 9 : Implications for tax revenues 10 : Social implications 11 : Conclusions Mackay Consultants Albyn House Union Street Inverness IV1 1QA Tel: 01463 223200 Fax: 01463 230869 e-mail:
[email protected] The Potential Socio-Economic Implications of Licensing the SEA 5 Area A Report 1.0 INTRODUCTION 1.1 The UK Department of Trade and Industry (DTI) is conducting a Strategic Environmental Assessment (SEA) of licensing parts of the UK Continental Shelf (UKCS) for oil and gas exploration and production. This SEA 5 is the fifth in a series planned by the DTI, which will, in stages, cover the whole of the UKCS. 1.2 The SEA 5 area is shown on the map on the following page. It is the area between the SEA 2 and SEA 4 areas. It extends from north of the Shetland Islands down the whole east coast of Scotland to the border with England. 1.3 Mackay Consultants were asked by Geotek Ltd and Hartley Anderson Ltd, on behalf of the DTI, to assess the socio-economic implications of licensing the SEA 5 area. This report sets out the results of our work, in relation to • oil and gas production, and reserves • capital, operating and decommissioning expenditure • employment • tax revenue • social impacts.