TWO new gas fields west of Shetland have the potential to meet 100 per cent of Scotland’s entire demand, according to a leading energy economist.

Production of gas from the Laggan and Tormore fields started at the new Shetland Gas Plant earlier this week.

Operator Total said the fields represented “the future of the UK oil and gas industry” and would produce around eight per cent of the UK’s gas needs.

Now Professor Alex Russell, from Robert Gordon University in Aberdeen, has now told The National that the gas could meet demand for the whole of Scotland.

“It’s perfectly possible, but it’s a question of interpretation,” he said.

“If the fields are expected to produce enough gas to meet eight per cent of demand in the UK, then it follows that they could meet 100 per cent of Scotland’s demand.

“But the price of gas is low at the moment, which is why companies have been cutting the price to consumers.

“Total have spent a massive amount of money – £3.5 billion – and, come hell or high water, they are going to make sure they get a return on that investment, but it will be profitable eventually.”

Prof Russell added that further reserves of oil and gas in the area might be exploited in future by “safe” fracking.

“Total are using a type of horizontal drilling into a layer of sand between two layers of shale,” he said.

“They only have about 80 personnel involved in the whole operation but the technology they’re using is fantastic — remote-controlled robots to get to otherwise inaccessible areas, to exploit these reserves in all sorts of conditions.

“There are pluses and minuses – there are fewer jobs, for instance – but I think this can have a dramatic effect on the North Sea.”

Although Total have no plans to engage in fracking, once the subsea technology has been developed further it may be possible in the future for other oil companies to use it to exploit in a safe, remote manner the vast reserves of oil and gas in the North Sea that are only accessible by fracking.

Laggan and Tormore lie in an area known generically as West of Shetland. Geographically, they are closer to the North Atlantic than the North Sea, right on the edge of the UK continental shelf (UKCS).

Total said the environment was “uniquely challenging”, but also had great potential.

Prof Russell said it was all about technology and innovation, and being prepared to take a risk.

“We are viewing a sea-change in the way oil and gas will be produced in the future.,” he said.“ I think we need to be bold in the future. There are incredible reserves of fracking gas available offshore.

“The technology will have to advance a bit – it does require advanced technology –but I think what we are now seeing is the possibility of that being able to be put in place and for the operations to be carried out in a safe way.

“It might take 30 years, but it has started and, if we develop it, Scotland could be a very rich country.”

Prof Russell added that carrying out remote production on this scale was “incredible” and also good news for other oil companies.

“If you think about being able to carry out production remotely across huge distances, it’s incredible, almost the equivalent of putting a man on the moon in oil terms,” he said. “I think it’s a fabulous possibility for Scotland and we need to be bold in taking this forward.

“It will also signal the fact thatthe in the UK, we have the capability of being innovative and we can export this innovation. In this instance, it’s a signal we can still make a profit from the reserves that are out there.

“There are still 22 billion barrels of oil out there – possibly more.

"No-one predicted the fall in oil prices, but that came about through political machinations outwith the control of the UK. The oil price will go back up again... We have to take a longer term view, not a short one.”

The National View: The rewards could be great if we are bold in gas fields

