Oil and Gas in an Island Context
Na h-Eileanan Siar is not an oil and gas producing region in the way Aberdeen or Shetland are. There are no producing oil or gas fields on the islands. However, oil and gas remain deeply woven into island life. Most homes have no access to mains gas, so heating oil and bottled liquefied petroleum gas are essential. Fuel for vehicles, fishing boats, ferries and aircraft must be shipped in. Industrial facilities in Stornoway have served the offshore energy sector, and the islands sit close to the Atlantic margin, where exploration has taken place in deep waters.
Understanding the companies involved in fuel supply, energy infrastructure and offshore fabrication helps explain how the islands keep moving, and how the region is positioning itself for the energy transition.
How We Compiled This List
Given the absence of local oil and gas production, we focused on organisations that play a meaningful role in the islands: fuel distributors, LPG suppliers, port and fabrication operators, power generation and major UK producers whose activities and products affect island energy supply.
The Top 10 Oil and Gas Companies for Na h-Eileanan Siar
1. Navantia UK
Navantia UK, part of the Spanish state-owned shipbuilding group, acquired the Arnish fabrication yard near Stornoway in early 2025 following the administration of its previous owner. Arnish has a long history of fabricating structures for offshore energy, including oil and gas and renewables, and remains one of the islands' most significant industrial sites.
2. Stornoway Port
Stornoway Port is the main gateway for fuel imports and heavy cargo. Its deep water facilities can accommodate large vessels, supporting fuel deliveries, energy projects and offshore operations.
3. Scottish Fuels
Scottish Fuels is a major independent fuel distributor that supplies heating oil to homes in Stornoway and across the islands, operating a local depot in Stornoway. It also supplies commercial and agricultural customers.
4. Engebret Ltd
Engebret is a family-run Stornoway business that supplies heating oil, bottled gas and other fuels, and operates a filling station. Its long-standing local presence makes it a familiar name for island households and businesses.
5. Calor Gas
Calor is the UK's best-known supplier of liquefied petroleum gas. With no mains gas network in the islands, Calor's bottled and bulk LPG is widely used for cooking, heating and hot water, as well as by caravans, campsites and hospitality businesses.
6. SSEN
Scottish and Southern Electricity Networks operates the Battery Point power station in Stornoway, which provides backup generation for the islands' electricity supply using oil-fired engines. It plays an important role in maintaining supply when grid links are interrupted.
7. Harbour Energy
Harbour Energy is one of the largest oil and gas producers on the UK Continental Shelf. While its operations are not based in the islands, it is a major part of the UK industry that supplies energy and employs offshore workers, including some islanders.
8. BP
BP has a long history in UK offshore oil and gas, including West of Shetland developments in the Atlantic margin. Like other majors, it is investing in lower-carbon energy alongside traditional operations.
9. Shell
Shell is one of the world's largest energy companies and has been a significant operator in UK waters. Shell-branded fuels and lubricants are also part of the wider fuel supply chain that reaches the islands.
10. Offshore Energies UK
Offshore Energies UK is the trade body representing the UK offshore energy industry, including oil, gas, wind, carbon capture and hydrogen. It provides industry data, supply chain support and a voice for companies, including those in the islands, seeking to participate in offshore energy.
Why Fuel Matters So Much in the Islands
Heating. Many island homes rely on heating oil or LPG. Prices can be higher than on the mainland due to transport costs, contributing to high levels of fuel poverty.
Transport. Road fuel prices in the islands are often higher than the Scottish average. Fishing boats, ferries and aircraft all depend on reliable fuel supply.
Resilience. Weather disruption to shipping can affect fuel deliveries, so local storage and distribution are vital to island resilience.
The Energy Transition
The islands are at an interesting point in the energy transition. Strong wind resources and community-owned renewables point toward a cleaner future, while heating oil and LPG remain essential for many households today. Heat pumps, insulation and renewable electricity are gradually reducing reliance on fossil fuels, and some projects have explored green hydrogen as a future fuel for transport and industry. Facilities such as Arnish and Stornoway Port, which once served primarily oil and gas, are increasingly focused on renewable energy opportunities.
Skills and Employment
Historically, many islanders have worked offshore in the North Sea, travelling to rotations from the islands. The skills developed in oil and gas, including engineering, safety, marine operations and fabrication, are highly transferable to offshore wind and other renewables. Training providers in the islands are supporting this transition with relevant courses and qualifications.
Tips for Island Fuel Customers
- Order heating oil before winter, when demand and weather risks increase.
- Compare prices between suppliers and consider joining a community fuel buying scheme.
- Have oil boilers serviced annually for efficiency and safety.
- Seek advice from energy efficiency organisations about reducing fuel use.
- Explore funding for switching to low-carbon heating where suitable.
Conclusion
While Na h-Eileanan Siar does not produce oil or gas, the industry remains central to island life through fuel supply, infrastructure and employment. The companies on this list keep homes warm, vehicles moving and industrial facilities ready for the future. As the islands embrace renewable energy, the skills, ports and fabrication facilities built around oil and gas will continue to play a vital role in a changing energy landscape.
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