For decades, the North Sea has been one the UK’s most critical national assets; supporting hundreds of thousands of jobs, boosting our economy, helping to keep our energy bills down and the lights on.
Britain’s transition to renewable energy should not signal an end to the North Sea story but a new chapter which will see this national asset continue to play a vital role in supporting high-skilled jobs, prosperity and our nation’s energy security.
But in order for this to happen, we need a clear and integrated plan to deliver an orderly transition that allows us to reach Net Zero while securing jobs, investment and fuel diversity.
Currently the oil and gas sector supports more than 200,000 jobs directly and indirectly. If this transition is delivered in the right way, many of those highly skilled jobs could successfully switch to new low carbon industries. Failure to achieve this risks causing serious harm to our economy and jobs.
It would also imperil the diversity of our power supplies, putting us at risk of becoming over-reliant on imported fuels.
Which is why the British Chambers of Commerce published its report calling for an independent taskforce to advise on how to achieve a balanced transition and secure a long-term future for the North Sea as an asset at the very heart of Britain’s renewal story.
In agreeing to lead this taskforce, I hope to drive an urgent and collaborative mission. The aim is to convene the expertise of industry, economists, environmentalists, union leaders, academics and politicians to propose pragmatic solutions to reaching Net Zero without sacrificing high-skilled jobs, investment or our energy security.
This means having an honest conversation about how this transition should be financed. Reduced investment would not only put the potential for re-purposing infrastructure in doubt but could jeopardise any chance of securing an orderly transition.
We have too much at stake to squander the opportunities a well-managed transition can deliver.
A long-term strategy for change, delivered at the right pace and with the full collaboration of all those involved, would not only make Britain a world leader in renewable energy production but would protect skills and jobs, boost our economy and help keep bills down.
The impact of a badly managed transition would be felt for generations, leaving a toxic legacy for communities every bit as damaging as the coalfield closures of the 1970’s and 1980’s.
But this is not just an issue for Aberdeen or even for Scotland. It impacts on the whole of the UK.
The supply chain for the oil and gas sector stretches from the Southeast of England up to Yorkshire and Humberside.
More than £4bn is invested by local government pension funds in companies operating in the North Sea basin. Whether they know this or not, millions of public sector workers across the UK have a very real stake in the long-term future of the North Sea asset.
We cannot afford to kick this can down the road and allow change to happen piecemeal. This is too big a change to leave to chance.
We must seize this opportunity now and work together to protect jobs, energy security, prosperity, and our environment.
The North Sea is a critical national asset and one of the most precious resources we have. A national asset deserves a national conversation and a united drive to secure its long-term future.
Philip Rycroft is the chairman of the new North Sea Transition Taskforce. Prior to this, he worked at a senior level for both the Scottish and UK Governments and alongside all four main political parties.