The Myth of Scotland's Oil (1973)

From the August 1973 issue of the Socialist Standard

If the victory of the Dundee by-election was regarded as a triumph by the Labour Party, the Scottish National Party must also have been elated by the large number of votes secured by their candidate who ran a close second. This would suggest that the Nats are making a comeback after a period in the doldrums following the party’s zenith in 1968, after Winifred Ewing’s election at Hamilton, when membership was claimed to be in excess of 90,000 with some 500 branches. At present members total some 60,000, with branches around 440.

Why the revival? Undoubtedly the rejuvenating shot in the arm came in the form of North Sea oil. The recent successes of the oil consortiums couldn’t have happened at a better time for the SNP, for two reasons. First—and this is the kernel of the Nationalist argument — the SNP have always asserted that the problems confronting Scotland resulted from the channelling of Scottish revenue directly into the coffers of the “English government’’ thereby preventing the Scottish worker from deriving any benefit from it (despite the obvious fact that his English counterpart doesn’t do too well either!). The advent of the Nats’ new sacred cow, oil, greatly strengthens this argument and has the added bonus of promising such offshoot titbits as rig-building, construction and service industries.

Second, the Nats had previously conceded (surprisingly) that in the early days of home-rule the standard of living would actually be lowered. The wealth they claim oil would bring to an independent Scotland allows them to discard this vote-loser, and the result is that many workers who were previously sceptical of home-rule are now expressing concern over “Scottish Oil” which goes, according to the SNP poster, “To London with Love”.

Who owns North Sea Oil ?

The territorial control of the world’s continental shelf areas was settled by the United Nations Continental Shelf Convention of 1958 when, by an agreement binding after 1969, countries bordering any particular section of continental shelf were given sovereign rights to explore and exploit the natural resources of the shelf. The North Sea continental shelf has since been divided up between Norway, Germany, Denmark, Holland and Britain. The first British round of licences for oil exploration was granted in 1964, several more having been made since, the latest in March 1972. By the end of 1972 at least six commercial-sized oil fields had been discovered in the Scottish sector together with other recent strikes (whose potential is still being assessed). They are:

• Forties Field which was the first and one of the biggest. Discovered by British Petroleum about a hundred miles east of Aberdeen. Eventual peak production will be in excess of 400,000 barrels per day (20 million tons per year).
• Montrose Field discovered about 30 miles south-east of the Forties Field by Amoco and thought to be capable of producing 100,000 barrels per day.
• Auk Field being brought by Shell into production at a rate of 40,000 barrels/day.
• Argyll Field is reckoned by Hamilton’s to be possibly in the 200,000 barrels/day range.
• Brent Field has Shell/Esso anticipating an eventual rate of over 300,000 barrels/day.
• Beryl Field Mobil are looking for a possible 300,000 barrels/day here.

The Face of Prosperity

Under London rule, argue the Nationalists in a new pamphlet The Reality of Scotland’s Oil by Nicholas Dekker, only 9 per cent of the taxes and royalties from this oil will go to Scotland. Under home-rule, however, the Nats claim that by 1980 (assuming that it will take five years to develop an oilfield in the North Sea) new fields discovered during 1973, 1974 and 1975 could bring production up to 150 million tons per year with an estimated gross value of £2,250 million, of which something like £1,400 million or over per annum could tumble into a Scottish exchequer. Coupled with an assumed 50 per cent of “Scottish participation” (investment of capital) in production and of 40 per cent or 60 per cent in ancillary costs (based on above figures), total potential worth to a Scottish economy would be 85 per cent or 90 per cent of gross value—£1,900 million to £2,000 [million] per annum.

This money can, insist the SNP, “be used to secure for all time, prosperity, security, and a satisfying life style for all the people of Scotland”. Among the many promises (play it again, Sam!) would be vastly improved provision for the old, the sick and needy, and the wiping out of the chronic housing problem. Thus armed, the SNP are preparing to contest every Scottish scat at the next General Election.

. . . and its Reverse

Socialists constantly expose the fallacy of home-rule, pointing as examples to other self-governed countries such as Libya, Venezuela, Russia, and even America, where workers derive little if any benefit from oil produced locally. Indeed the opposite can result as is the case in Aberdeen where the oil boom has resulted in a property price-spiral far surpassing anything in Scotland (in fact reaching parity with English property prices) with such bizarre examples as the two-apartment tenement flat which fetched a price of over £4,000!

Equally unsound is the argument that the oil industry must inevitably produce an increase in the number of jobs available. For it could also mean a drop in the demand for other fuels, notably coal, with redundancies in those industries and their offshoots. Not only that, but many of the “new” jobs will, if the SNP have their way, simply have been taken from workers already doing them in England, so it’s a case of robbing Peter to pay Jock, a situation which in no way benefits the workers as a class.

Who Benefits ?

Perhaps the biggest fallacy of all is the Nats’ vision of the anticipated wealth from oil being used exclusively to provide a heaven on earth for Scottish workers. Of course, as the Nats themselves admit, the oil companies will have to have it made worth their while if they are to put up the “vast sums of risk capital to finance search and exploration” and so will the “private and semi-private Scottish capital” they talk about. Also, the cost of government, including the armies of civil servants which any modern capitalist nation must have to administer its affairs, will have to be paid for, and obviously no government can afford to neglect to defend such a valuable property as its oil fields so it will have to provide for defence either independently or through NATO. So, one way and another, there can be little left with which to fulfil the grandiose promises being made. We can confidently assert that the benefit of oil in Scotland will go, as elsewhere in the world, to the owners and the most that Scottish workers can expect from the oil boom is . . . work and wages!

Finally, it’s worth considering that if the North Sea does produce a supply of oil of any significance in relation to world fuel supplies, and bearing in mind the recent panic measures taken by President Nixon, the scramble for oil could become intensified (rapidly expanding Japan, already using 50,000 million gallons a year, estimates treble consumption by the 1980’s). And as trade war sometimes develops into armed war, the tragic result could be that workers living in Scotland could well find themselves, like those in Iceland, being called upon to take up arms to defend “their” oil.

A. McNeill

Obituary: Jim Fleming (2022)

Obituary from the April 2022 issue of the Socialist Standard

It is with sadness that Glasgow branch has to announce the death of James Fleming on January 30th at the age of 85. James – Jim to his friends – was born in Glasgow’s Rottenrow hospital on the second of September 1936. He lived with his parents in a one room rat-infested flat with an outside toilet shared with 17 other neighbours in the Maryhill district. He attended the local school where he excelled at art his favourite subject. He was also proficient enough to be selected for the school football team where, coincidentally, the goalkeeper was Dick Donnelly, a future comrade in the SPGB. Also in the team was Bertie Auld, who would achieve legendary football status as a member of the Celtic team which in 1967 was the first British club to win the European Cup. Rubbing shoulders with famous personalities would be a constant throughout Jim’s life.

Jim was introduced to politics at a young age by his parents who would take him along to the Glasgow Workers' Open Forum where people of different political persuasions would participate in heated debates. One of Jim’s fondest memories was of his father straining to read Capital by the light of a candle. His father was an accomplished accordion player who would entertain their neighbours who would cram into their tiny home during air-raids. As a railway employee, his father was tasked with overseeing a group of Italian prisoners of war put to work on the rail tracks, during which he would sneak them away to their home where Jim’s mother would share their meagre rations.

Jim’s first job at the age of 15 was in a hat shop in Glasgow’s Buchanan St where on one occasion he was instructed to accompany a customer to another hat shop to purchase a hat that was out of stock in Jim’s place of work. The customer was Maurice Chevalier. After the war Jim obtained work at Renfrew Airport as a warehouse boy where he worked really hard eventually attaining the position of Cargo Manager for Glasgow and Manchester airports. As a manager Jim was required in the event of an industrial dispute, to represent the employers as was the case when he found himself seated across the table from the shop steward who incredibly, was also an SPGB member, and who prior to the meeting had been coached by Jim about avoiding saying anything that could be interpreted as weakness. The union won the day.

Jim had innumerable flights during his 40 year career but undoubtedly the most memorable resulted from a last minute memo requiring representation at a meeting scheduled for later that day in New York which would be an impossibility by a conventional flight. His boss had other ideas and Jim found himself aboard Concorde arriving at the venue just as the meeting was about to commence.

After coming into contact with the SPGB he became a member in October 1961. A very capable speaker, Jim had an uncanny knack of exerting a calming influence on any belligerent member of the audience who took exception to being referred to as a wage slave. However, on one occasion when speaking in Paisley, his ability was ineffective with one man who threatened him with violence before departing and then reappearing, brandishing a discarded empty milk bottle which he smashed against a wall before rushing the platform, then realising that all he was holding was the neck of the bottle. He then bolted. Jim returned to Glasgow to meet up with the other members in the Horseshoe bar after they had concluded their meeting in Royal Exchange Square. He related the bottle tale which was met with much hilarity, including from the one non-member who had attended previous meetings and had been invited to join the members in the pub – Billy Connolly, who in a later album told a tale about being threatened by a drunk guy with a beer bottle which he smashed…

Jim was still active, attending branch meetings until Covid struck. Away from the Party, his main activities were golf, ballroom dancing, and walking, which he continued as long as he was physically able. We extend our heartfelt condolences to his children, Peter, Kirstyn and Karl.

A.Mc.N.

Who Owns the Land Under the Sea? (1975)

From the October 1975 issue of the Socialist Standard

“Carry on conferring" may sound like the latest title in a series of third-rate comedy films but in fact this particular farce is anything but funny, at least not to the participants who have gathered in Geneva in an attempt to arrive at some common ground for the establishment of clearly defined and governable laws on the question: who owns the land under the sea? Capitalism being the epitome of a private property system at its most complex necessitates an equally complex network of laws. Nothing exemplifies this more than the latest follow-on from last year’s session when the legal eagles went Caracas trying to solve their perplexing problem.

The problem is more easily understood when the underlying cause which motivates it is recognized. That cause is profit which in this instance is envisaged from the mining of “nodules” — fist-sized lumps of mineral ore found on the floors of the Pacific and Indian oceans, and the realization of the potential untapped sources of wealth such as manganese, iron, nickel, and cobalt etc, which they contain.

Evan Luard in his book The Control of the Sea-bed tells how in 1959-60, a study by a group of US scientists from the University of California estimated that the total volume of nodules in the entire Pacific ocean, based on the size of concentrations revealed by undersea photography, could be around 1,700 billion tons. A more recent UN study assessed that the nodules may contain 16.4 billion tons of nickel, 8 billion tons of copper, 8.8 billion tons of cobalt. The importance of the resources can be made clear by relative comparison of the same resources found on land. If the calculations of the Californian study quoted were confirmed, nodules in the Pacific ocean would contain about 358 billion tons of manganese, equivalent to reserves for 400,000 years at the 1960 world rate of consumption, compared with known land resources for only 100 years. 43 billion tons of aluminium, equal to reserves for 20,000 years compared to known land reserves for 100 years. Nickel, equivalent to reserves for 150,000 years; copper equal to reserves for 6,000 years; cobalt for 200,000 years. Also, the nodules may contain iron, titanium, magnesium, lead and so on. These are the figures for the Pacific alone. With the content of the nodules in the Indian ocean these figures of course, become even greater. Although the authenticity of these figures has not been verified, the direction in which they point is obvious. Added to this is the discovery that the nodules are forming all the time, and at a rate in the Pacific alone of perhaps 10 million tons a year. This then, is the motivation. The problem arises as the conference tries to introduce legislation which will be acceptable to all the countries represented — a rather fruitless exercise since geographical locations of the individual countries concerned determine the legislation required by them. For example, proposals to widen the outer boundary limits would benefit coastal states (especially the large ones) since the area closest to the coast will in all probability be richer in resources. If the boundary is extended to 2,500 metres in depth as has been suggested or to the 200-mile limit proposed by Latin America, this would mean the appropriation of the most valuable part of the area by coastal governments.

Conversely, countries with small coastlines, the land-locked and the shelf-locked, would have to negotiate for a share of these resources. Again, some countries are favoured with wide and narrow shelves while others have none at all. Then there are the emerging capitalist countries such as those in Africa who see the exploitation of the sea-bed as a serious threat to their economies, since some of them depend heavily on the export of mined metal ores, and obviously metal prices could be drastically reduced.

The exploitation of nodules renders obsolete the need for conventional mining and all it entails such as sinking mineshafts and tunnels. Where the material is already available on the sea-floor it requires simply to be scooped up.

So the talking continues, everyone agreeing that agreement must be reached but all of them unanimous in that they don’t know how. Bearing in mind the insular nature of capitalism with each group of representatives striving to secure the most favourable (profitable) conditions for their masters, it is small wonder that no agreement can be reached since one country’s gain is another’s loss. Therefore, all the useless platitudes being kicked around suggesting that a solution will be found “in the common interest of all concerned” are about as realistic as trying to play musical chairs where no one loses.

By “common interest” what is really meant is capitalist interest. No worker has any real interest at stake in this conference, although our masters would like us to believe otherwise, especially if, as is almost certain, the talking stops. Then warning signals might inform us that some nasty foreigner has got a tight grip on “our” nodules (very painful) and that in the interest of “The Nation” etc. etc.

The ruling groups of the world however, have no illusions about either the economic basis of this tug-o’-war, or the ultimate outcome in the event of a complete breakdown of discussion. It has been frankly stated that the oceans could become an arena of conflict which would make Vietnam seem like a picnic.

A. McNeill