The leader of the Scottish Conservatives is confident George Osborne will help the oil industry in his budget next week.
Ruth Davidson issued the assurance after meeting with the industry body Oil and Gas UK in Aberdeen yesterday.
With the impact of falling oil prices being felt across the north-east and farther afield changes to the fiscal regime governing the industry are seen as a vital ingredient to the industry’s future.
The Conservatives realise they must deliver if they want to avoid a complete wipeout in May’s general election.
Ms Davidson described her meeting with Oil and Gas UK economics and commercial director Mike Tholen as “very useful”.
“They made it clear they need a big signal within next week’s budget to show investors that there is a long-term future for the North Sea which will encourage investment,” she said.
“We need a tax and investment regime which demonstrates commitment to stability and development.
“I spoke to the Chancellor yesterday to discuss this issue and he understands the situation very clearly, and I’m sure that he will send out the right signal that the industry needs.”
Mr Tholen said across al major political parties there seemed to be an understanding that action was needed in order to sustain investment in the UK continental shelf.
“There has never been a more important time to debate the state of the industry view with Government parties – less than a week prior to the Chancellor’s upcoming Budget, and in the present environment of high costs, inappropriate regulation and a tax burden of between 60% and 80%, issues which have been compounded by the recent collapse in the oil,” he said.
”Today’s was a good meeting, where we enjoyed a positive discussion with the leader of the Scottish Conservative & Unionist Party on progress towards regulatory reform, the actions being taken by industry to reduce its costs, and the urgency with which significant change to the tax regime is required.”