This report is a contribution to the Strategic Environmental Assessment (SEA2) conducted by the Department of Trade and Industry (now Department of Energy and Climate Change). SEA2 focuses on the mature areas of the North Sea UK continental shelf which is divided into 3 areas - Northern, Central and Southern North Sea. This paper provides an overview of cephalopods - squid, octopus, cuttlefish in the SEA2 area. Cephalopods are short-lived, carnivorous animals that have rapid growth rates and play an important part in oceanic and coastal food webs. They are preyed on by cetaceans, fish and seabirds, and are predators themselves, feeding on fish, crustaceans, molluscs and cephalopods. Knowledge of cephalopod distribution in Scottish waters is mainly based on information from commercial whitefish vessels that catch squid as a by-catch. The loliginid squid Loligo forbesi is the predominant species. English cephalopod landings are dominated by cuttlefish caught in the English Channel outside the area of interest. The benthic octopod Eledone cirrhosa, though a highly valued species in southern Europe, is usually discarded by fishermen in Scottish waters. Fishery management statistics indicate that the areas of highest abundance of Loligo forbesi and of Eledone cirrhosa lie outside the SEA2 area. Cephalopods naturally accumulate high levels of trace metals. The potential of drilling operations to introduce trace metals into the sea is discussed. It is concluded that the overall impact on cephalopods and cephalopod fisheries in the SEA2 area by further oilfield development would be slight.