Exploration for and production of oil and natural gas from the North Sea has already made an important impact on economic and social life in the North East of Scotland. The potential of the industry in relation to both the national and regional economy is considerable. This paper outlines the role of the regional development promotion agency, NESDA, in an offshore oil context and examines some of the benefits and problems generated by this new U. K. industry in the region comprising the City of Aberdeen and the Counties of Aberdeen, Banff, Kincardine, Moray and Nairn.