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Scotland declares win with new oil agency

Aberdeen the "energy capital of Europe," Scotland says.

By Daniel J. Graeber

ABERDEEN, Scotland, June 13 (UPI) -- Scotland is the right place to set up an agency supporting the region's energy sector because it's the "energy capital of Europe," a government spokesman said.

Treasury Minister Danny Alexander announced the independent Oil and Gas Authority would be based in Aberdeen. A spokesman for the Scottish government said the decision was the right one to make.

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"The Scottish government has made clear from the outset that Aberdeen, the energy capital of Europe, is the only conceivable location for the new regulator to be headquartered," he was quoted as saying Thursday by the BBC.

The independent agency will be set up to foster support for the energy sector in the region.

Scotland holds a referendum for independence in September. The government says it could support itself with oil and gas revenue while powering its economy in renewable energy resources.

Speaking at an energy conference in Aberdeen, Scottish First Minister Alex Salmond said independence would strengthen the ties between the government and the industry.

"[Aberdeen] should not be in pole position but in sole position," he said Wednesday.

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