It is always a matter of great pleasure and pride to take part in the celebration of a major technological achievement. All the more so, when that achievement is already bringing such enormous benefits to Scotland and to the United Kingdom as a whole.
Too few people really understand the scale of effort that the companies working offshore have made and are making to bring oil-fields on-stream, in weather conditions that are often appalling. This great venture began some ten years ago, soon after the first oil discoveries were made. Companies soon had to spend vast sums of money: so far, I understand nearly £9,000 million. They had to develop entirely new technology; to bring in expertise from all over the world while at the same time encouraging British industry to meet their requirements. For years, the money went in, at a rapidly increasing rate, but no oil came out. Still the industry pressed on. Free enterprise, national and international, showed its faith in Britain.
Now we are seeing the results. Five years ago we had no offshore oil production. Now we have over 1.7 million barrels a day—equivalent to over 80 per cent of our own requirements, and adding massively to the new sources of energy that the Western nations must develop if we are to remain secure and prosperous in the years ahead. Last year, sales of North Sea oil totalled £2,800 million—making a growing contribution to our balance of payments. Production is still increasing. Twelve fields have come on-stream in the past four years: another eleven will do so in the next four years.
No other oil producing country—in the Middle East or anywhere else—has ever built up its output so fast. With operating conditions as they are in the North Sea this is an astonishing achievement. [end p1]
There are some who fear change and who are dismayed at new technology.
You have shown that new technology is the true friend of full employment; the indispensable ally of progress; and the surest guarantee of prosperity.
The new pioneers of the oil industry are equal in imagination and resource, in skill and initiative, to the great pioneers of the industrial revolution. They do not fear change. If they did, the riches of the North Sea would remain untapped, the nation would be the poorer and we would still be depending on others for what we are now able to produce ourselves.
Let me return to your own particular efforts.
Even for Shell and Esso—two of the world's most powerful oil companies, working in combination—the scale of effort and expenditure required has been daunting. This partnership has committed over £3,000 million already to the North Sea and more will be spent in the next few years.
With sums like this at stake it is natural that the companies working offshore co-operate and share facilities wherever possible to keep costs down.
Thus this control centre will deal not only with Shell and Esso's own North Sea production, but also with oil from other fields which will pass through the same pipeline to the Sullom Voe terminal which is operated as a joint venture in the Shetlands.
In addition to controlling oil production this Centre will control gas flows down the pipeline from Brent to St. Fergus when this becomes operational. [end p2]
I know that there are difficulties in bringing into operation the gas handling facilities at Brent, and as a result very large quantities of valuable gases are having to be wasted by flaring. I am sure that Shell and Esso are making every effort to overcome these difficulties and reduce this waste.
Today's celebrations illustrate not only advances in oil technology but advances in computer control technology. There are other industries which embrace change; but some don't. The challenge of the 1980s is for other industries in Britain to follow the lead which you have given. Too many people in too many industries think that jobs can be protected by resisting new technology. If we don't welcome new processes, new products and new designs, others will. They will grow richer, while we will grow poorer. Their products will replace ours in the markets of the world. They'll have jobs and we won't.
Your two companies have shown a sense of adventure, initiative and resolve, and they have produced results. A wonderful recipe for all successful companies which want to remain successful—and not a bad recipe for Governments either!
I am grateful to you for giving such an excellent example so early in the life-time of a new Government, which believes in the same principles which you practice. In that spirit, I have great pleasure in opening this new Centre.