An Aberdeen MP has called for the UK Government to deliver a proper plan for the energy transition to prevent catastrophic job losses in the oil and gas sector both in the North-east and throughout the UK.
Kirsty Blackman, who represents Aberdeen North, has warned that the 400 jobs lost at Grangemouth could be repeated every week if the UK Government fails to get its energy policy right.
Ms Blackman led a debate on the issue in the House of Commons yesterday and urged the UK Government to deliver a clear and credible plan to protect jobs and communities during the energy transition.
“As of 2021, direct employment in oil and gas in Aberdeen has declined by nearly one-third since 2015,” Blackman said, citing evidence from the UK’s seventh carbon budget.
“Household disposable income has fallen and poverty has increased… some estimates indicate that around 14,000 people in the region will need to have moved to other roles or sectors between 2022 and 2030.”
The fate of North Sea oil and gas workers, along with those in services reliant upon extraction, is a key challenge of the UK’s energy transition.
The Labour Party previously made banning future North Sea oil and gas licences a key part of its election campaign as it looks to move the country away from fossil fuels towards renewables.
Ms Blackman stressed: “We are at a tipping point. We risk losing the skills, manufacturing capabilities and people we need to power a renewable future.”
Industry bodies including Offshore Energies UK (OEUK) and Aberdeen & Grampian Chamber of Commerce have repeatedly flagged a collapse in confidence, exacerbated by the UK’s windfall tax on energy producers and delays to offshore wind infrastructure rollouts.
The SNP MP called for a “mission control” approach, with a single minister or official given responsibility for delivering a just and managed transition. She also pressed the government to fast-track decisions on the UK’s energy fiscal regime, warning that delays could see final investment decisions shelved later this year.
Echoing the concerns, Conservative MP Harriet Cross (Gordon and Buchan) warned: “If we run down production too quickly and before wind is effectively scaled, the capabilities and expertise will be lost.”
UK Government Energy Minister Michael Shanks acknowledged that the transition is under way, and said a credible plan is essential to secure future jobs and growth.
He said that the Government’s open consultation on North Sea energy policy and fiscal framework is ongoing and pledged rapid response “so the industry gets the clarity it needs before investment decisions this autumn.”
He said: “We may all disagree on timing and detail, but we all agree that the workforce must be at the heart of this.”
Shanks also hinted the UK Government is actively considering appointing a transition oversight lead, and promised that “speeding up decisions” was now a priority.