‘Collaboration with offshore energy is key to home-grown energy future’

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Wind turbines built in China. Oil and gas workers worried about what the future holds. Energy bills remaining high. Bans on new gas boilers and new electric and diesel vehicles.

What is said and done by politicians today will decide the success of the next decade.

What does that success look like for the offshore energy sector? We share the vision of a successful and transformational energy transition which grows the economy, supports jobs, delivers our climate goals and provides secure and reliable energy and products to millions. 

There is much we agree on. Offshore Energies UK and its 400 members work collaboratively across the whole offshore energy sector, not only to deliver domestic oil and gas production, but also to unlock at scale carbon capture and storage, the hydrogen economy, and offshore floating wind. 

Our members are committed to safeguarding existing jobs and creating new jobs while anchoring manufacturing in the UK. The companies account for a 200,000 strong workforce, with 90,000 of those in Scotland. These companies move seamlessly from one project to the next and we are committed to making their expansion even easier. 

We need pragmatic policy not outright bans if we are to deliver the transition, we all want to see. One which prioritises UK production over imports, avoids a cliff edge, and makes the most of UK skills and companies to drive the transition. 

It’s why we continue to challenge Labour’s opposition to new oil and gas licenses. There are currently 283 active oil and gas fields in the North Sea. By 2030 around 180 of those will have ceased production due to natural decline, and it is in our national interest to replace some of these fields. 

A hard stop on new licences is a cliff edge and will undermine the very investors we need for a successful domestic energy transition. Industry needs the churn of some new licences to slow down decline to meet demand.  

Some 24 million UK homes rely on gas boilers for heat and hot water and 32 million vehicles run on petrol or diesel, with 42% of the UK’s electricity currently coming from gas-fired power stations.

With a robust climate compatibility checkpoint, we can invest in homegrown production and avoid costlier, less secure, and higher carbon footprint imports while supporting the infrastructure we need to make cleaner, more affordable energy in the UK, for the UK. 

We also need pragmatic engagement which demonstrates Labour is listening to the integrated offshore energy sector. This will give confidence to the companies that any future government will need for the £1.4 trillion cost of the transition. 

In his speech in Edinburgh, Sir Keir Starmer spoke about how his plans for Great British Energy aim to crowd in private investment. We hope to hear more about this in the coming months, and what it could mean for the acceleration of homegrown wind, tidal, solar production as well as carbon capture and storage. 

OEUK members are helping to develop 13GW of offshore wind capacity by 2030, with these projects requiring almost £30bn of investment. That’s 60% more than the cost of building the Elizabeth Line.

Profits made today are being invested in new innovations to accelerate our progress to renewable energy sources. The North Sea Transition Deal alone will see us invest up to £16bn by 2035 in low carbon energy and emissions reduction.

We echo the sentiments of GMB and Unite who want to see new opportunities developed and pioneered in the UK, supported by ongoing production of domestic oil and gas. 

As an apolitical organisation, OEUK will work with all parties and the government of the day to make the most of the opportunities that lie ahead. We want to build on our industrial heritage as we expand into carbon capture and storage, hydrogen, and floating offshore wind. 

We want a pragmatic approach to energy which focuses on policies which accelerate our expansion – not outright bans.

Getting this right will set us up for a decade of delivery. It means we can have more wind turbines built here in the UK, a positive future for oil and gas workers, affordable energy and most importantly – a clear path ahead for workers, consumers and companies.