Aberdeen must be able to compete with other oil cities such as Houston and Dubai with a lack of investment in the north east putting the UK industry at risk, it has been claimed.
Jenny Stanning, external affairs manager of Oil and Gas UK, said Aberdeen required further spending on housing , transport and infrastructure to keep pace with its industry rivals.
Her comments came at the launch of Aberdeen City Region Deal, which outlines a £2.9bn upgrade plan for the city and Shire.
The plan’s core vision is how to support the oil and gas industry by creating better roads, more housing, faster, more convenient rail links and high standard digital connectivity.
This in turn will draw more business and people to the north by making it a more attractive plans to live and work.
Ms Stanning said that Aberdeen had to be able to compete for investment against other oil cities such such as Houston, Calgary, Dubai and Stavanger.
She said: “These cities aren’t standing still. You only had to land at Stavanger airport and drive to the city to see what has been invested into the road network, housing, office space and the airport hub itself.
Ms Stanning added: “Without this investment we will worry that the Aberdeen area could limit the growth of the industry in this country.”
The Aberdeen City Region Deal has taken more than two years to complete.
It is due to win support of councillors at both Aberdeen City Council and Aberdeenshire council this week, with the document then to be passed to Westminster and Hollyrood for consideration.
It could take around two years for both governments to approve funding.
Those behind the plan argue that every penny invested in Aberdeen’s infrastructure will be fed back into the Treasury through tax payments from companies who invest and commit to the area.
Councillor Jenny Laing, leader of Aberdeen City Council, said: “This is about making sure that we can anchor the industry and its supply chain locally for many years to come.
“Despite Aberdeen being a booming economy, it is apparent that a lack of public sector investment is holding back private sector investment.”
Councillor Jim Gifford, leader of Aberdeenshire Council, said the Aberdeen City Region Deal was a “fantastic” opportunity to secure the area’s future prosperity.
He said: “We are a very successful prosperous area but if we don’t do something about it, there is a fair chance we are not going to be like this for very long.
“The benefit that could come from this is huge and it is a benefit that will last long into the future.”
He said there were many examples of where major companies had spoken of the constraints of doing business in the north east.
Mr Gifford said: “Probably the most vocal has been Aker, which has a huge new office in Dyce and a 25-year-commitment. They have said the two things that will keep them here is infrastructure and talent.
“They need talented people but these people will only come here if it is an attractive place to work – and that they can afford to live here.”