One of the Labour Party's biggest union backers has hit out at the party and warned that ministers have left the oil and gas sector “facing a cliff-edge for investment, production and jobs”.
In a rare joint statement, representatives of offshore firms and the GMB trade union have warned that plans to end North Sea drilling will inflict catastrophic job losses on communities throughout the UK.
They have called for ministers to implement a “fair fiscal regime for the sector which incentivises investment and jobs; with domestic production from new and existing fields that will help deliver the oil and gas we still need”.
Writing jointly for The Times, Robin Allan, chairman of the Association of British Independent Exploration Companies; David Whitehouse, chief executive of Offshore Energies UK; and Gary Smith, the GMB’s general secretary, said the UK will continue to need oil and gas years into the future despite Labour’s pledge to move to “clean energy by 2030”.
They warn that Sir Keir Starmer risks inflicting job losses equivalent to closing the Grangemouth oil refinery every week with its approach towards North Sea drilling.
They said that large questions remained about whether oil and gas would be produced domestically or imported “in an increasingly volatile world”.
They write: “These are questions government haven’t yet answered clearly or credibly. [Workers] deserve a fuller response because industry and independent reports suggest that fiscal plans for the offshore sector could see tens of thousands of job losses by 2030.
“Imagine the employment equivalent of a Grangemouth refinery closing nearly every week from 2025 to 2030. No one should leave that unchallenged.”
At the weekend, Sharon Graham, general secretary of the Unite union, also accused senior Labour and SNP politicians of letting down workers, adding: “Grangemouth is making net zero look far from a just transition, more a jobless transition.”
A spokesman from the Department for Energy Security and Net Zero said: “The government has a non-negotiable commitment to securing a proud future for the North Sea and we are engaging with industry, workers, trade unions and civil society to provide certainty through a phased and responsible transition.
“Our National Wealth Fund and Great British Energy will work in lockstep with industry to unleash private investment - helping create thousands of jobs in clean energy to boost our energy independence.”