The Scottish Government is being urged to back North Sea workers and reverse its presumption against new oil and gas exploration.
It is now two years since the Scottish Government unveiled its draft Energy Strategy and Just Transition Plan which sought to hasten the end of North Sea production.
While intended to accelerate the shift to renewables, the delay has drawn widespread criticism from industry leaders, workers, and business organisations.
Speaking on the second anniversary of the policy, Aberdeen & Grampian Chamber of Commerce has called on First Minister John Swinney to move to a position which favours domestic production over increasing carbon-intensive imports.
Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: “We’ve been promised numerous times since that the final version would be published but we are still waiting, strategy-less on an industry that is the country’s second largest, contributing around £25billion to GDP. Maybe we’ll be fine just exporting our famous whisky and shortbread.
"Of course all legislative powers are reserved to Westminster but the mood music from Holyrood matters.
"Our position here is fairly unique in that industry, investors, academics and the trade unions are all aligned. As Unite put it: 'No ban without a plan.' There isn’t one.
"And the so called ‘Just Transition’ is simply happening too slowly to protect jobs, tax revenues and guarantee keeping the lights on.
“The presumption against oil and gas is disconnected from reality, as we saw last week when Centrica warned that our gas storage levels were dangerously low.
“Even the most optimistic projections show that hydrocarbons will remain part of the energy mix for decades. The International Energy Agency acknowledges this reality, so why is the Scottish Government burying its head in the sand?
“Oil and gas currently supports around 200,000 jobs across the UK, almost half of them in Scotland. These aren’t just numbers – they are livelihoods, communities, and families.
“Accelerating the decline of North Sea oil and gas will destroy this world-class supply chain, and for what? To make a symbolic point while we continue importing oil and gas from nations with far less stringent environmental standards and a much higher global carbon toll?
“We should be leveraging the expertise of our oil and gas workforce to lead the global energy transition. The same engineers who make the North Sea one of the safest and cleanest production basins in the world can pioneer carbon capture, hydrogen production, and offshore wind. But we can’t get there by demonising the very industry that these workers and companies rely on for work.”
Under Labour, the UK Government has followed the Scottish Government and said it will halt new oil and gas exploration licenses in the North Sea. And companies operating in the UKCS face a further layer of uncertainty due to a legal challenge which could force scope three emissions – those created by the use of fossil fuels – to be considered when issuing licences.
Why does this matter?
Russell Borthwick explained: "The livelihoods of 90,000 people in communities across Scotland depend on the oil and gas sector. If we prematurely cease North Sea operations at pace we will see a repeat of the mass job losses we saw in coalmining areas in the 80s - as the clean energy jobs of the future do simply not exist yet at scale. This is something that politicians of all colours say will never be allowed to happen again. But it seems like policymakers north and south of the border are happy to make them the collateral damage of their views.
"There is a real risk that we will return to the dark days of the 1970s before we had our own domestic oil and gas supplies. As witnessed by events in New Zealand who a number of years ago put in place similar policies to those being proposed now in the UK. The result? Families across the country have suffered blackouts, been forced to limit their electricity usage and seen their energy bills rocket.
"And the government is inviting energy firms to resume exploration in three major offshore fields to increase gas supply having previously banned this in over-hasty pursuit of meeting their climate commitments.
"From being a net exporter of gas in 2003, the UK today imports 55% of its requirements. On current trajectory this could increase to 80% by 2030. However, domestic demand for energy in the UK is what it is. And the Climate Change Committee accepts it will still be a significant element of our energy mix post 2050.
"The question is, do we want that to be met domestically or move over the next five years to 80% of it being imported half way around the world at a four times plus higher global carbon footprint. That will certainly not help the climate crisis."
Polling has consistently showed that 75% of Scots would rather see the UK meet its energy demands from domestic sources than import from overseas.
The situation has drawn international attention, with president-elect Donald Trump describing the UK’s opposition to oil and gas exploration as a "very big mistake".
Russell Borthwick added: “Donald Trump’s support for the North Sea is welcome, but it should not fall to the president-elect of America to make the case for jobs and investment here. Maybe it was driven by his affection for Scotland - affection the First Minister is keen to harness to avoid trade tariffs on our whisky exports. It might be all we have left.
“We need full-throated support for our oil and gas sector from both our governments, but particularly here in Scotland where it is such a crucial part of our economy.
“The presumption against oil and gas must go and be replaced with a policy position which will deliver energy security and transition in tandem.
“If the alternative is importing oil and gas at a greater carbon cost, then we must favour domestic production.”
Oil and gas opponents Uplift sought to link North Sea production with the fires currently being experienced in Los Angeles.
Tessa Khan, executive director at Uplift, said: "No one can look at the current wildfires in LA or the intense flooding of recent years in Scotland and think we should be expanding oil and gas production. It's government's job to make those choices in the wider public interest."
Russell Borthwick said: "The definition of the word transition is: 'A change of state…over time.' The whole topic has become hugely polarised but actually everyone wants the same outcome. It's just a case of how we get there - we need a more reasoned debate.
"That’s why we are backing British Chambers North Sea Transition Taskforce aiming to take a cross societal, independent view of the right path to take and we’d like to invite Tessa Khan to visit Aberdeen or to meet with Philip Rycroft, the chair of the Taskforce."