§ Q86. Mr. Kennedy
asked the Prime Minister if she will make a statement on the current level of oil-related economic activity in Scotland.
§ The Prime Minister
The production of oil from the United Kingdom continental shelf is continuing at a broadly constant level. Daily average production expressed in million barrels per day was 2.692 during January 1986 and 2.508 during August 1986, with an average over the eight months of 2.525. The level of development and exploration of new fields is lower as a result of retrenchment by companies in reaction to low oil prices. This downturn in offshore activities has resulted in reduced demand for equipment, goods and services, particularly in the fabrication and supply companies, many of which are based in Scotland. Various proposals for fiscal and other measures have been put to the Government by the oil industry and others and these are being considered.