(WO) — Britain risks losing thousands more skilled North Sea oil and gas workers before emerging energy industries can absorb them, according to a new report from the North Sea Transition Taskforce.
The Taskforce’s One Year On report says UK oil and gas activity is declining faster than offshore wind, carbon capture and storage (CCS), hydrogen and other emerging industries are expanding, potentially putting existing skills, investment and supply-chain capacity at risk.
Oil and gas currently supports about 115,000 jobs directly and through the UK supply chain, according to the report, while an estimated 25,000 jobs have been lost since the last UK general election. The impact has been particularly significant in northeast Scotland, where roughly one in four workers is employed by or supports the offshore energy sector.
“The fundamental problem is that the traditional energy economy is declining faster than the new one is being built,” Taskforce Chair Philip Rycroft said. “If we allow that gap to widen further, we will lose skilled people, businesses and infrastructure which cannot simply be recreated when new industries are ready to expand at scale.”
The Taskforce is calling on the UK government to end the Energy Profits Levy (EPL) and introduce the proposed Oil and Gas Revenue Levy beginning in 2027-28 rather than 2030. The UK government has said the EPL is scheduled to end in 2030 unless its price-floor mechanism is triggered earlier.
Industry analysis cited by the Taskforce estimates that bringing forward the new fiscal regime could unlock up to £50 billion in additional private investment and generate more than £13 billion in tax revenue over the following decade.
The report argues that North Sea production should be managed so existing workers, infrastructure and supply-chain capabilities can transfer into emerging energy industries as they expand. It also points to continued domestic oil and gas production as a contributor to employment, investment and energy security.
“For the North-east of Scotland, this isn’t an abstract debate about what our energy system might look like in 20 years,” said Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce. “Jobs and investment are being lost right now.”
The Taskforce also called on the Scottish government to finalize its Energy Strategy and Just Transition Plan and coordinate economic and skills strategies for northeast Scotland as the region’s offshore energy industry evolves.
