Let's choose a homegrown energy future

New Statesman​

02-07-2025

Image: OEUK
The UK offshore energy industry is vital to our national interests. It powers our homes, fuels our economy, supports skilled jobs across the country, and helps to drive down emissions. As the UK moves towards a lower-carbon future, this sector will remain essential in meeting the country's energy needs while building the infrastructure of tomorrow.
From offshore oil and gas to wind, hydrogen and carbon capture, the sector is already delivering the mix of energy sources needed to keep the lights on, grow the economy and progress towards net zero. But it needs a clear, stable energy strategy from government to continue investing, protect jobs, and ensure UK energy security.
This is not a theoretical debate, but a practical one. The choices made today will affect energy bills, jobs, investment and emissions for decades.
Currently, around 75 per cent of the UK's energy comes from oil and gas. These fuels are essential—not just for heating and transport—but for making products like steel, chemicals and cement. While demand will fall over time, it won't disappear overnight.
Even in the most ambitious net zero pathway, the UK will need oil and gas for decades. The Climate Change Committee estimates we'll need 13 to 15 billion barrels by 2050, yet we're on track to meet less than a third of that from domestic resources.
With the right policy environment, we could meet up to half of that demand, supporting energy security, protecting jobs and delivering over £150 billion in economic value. Every barrel we produce at home is one we don't import.
Relying on imports means exporting jobs, raising emissions, and losing control of our energy future. It also increases vulnerability to global shocks.
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The offshore sector supports over 200,000 UK jobs, including 90,000 in Scotland, and contributes £25 billion annually. It's already delivering major low-carbon projects and is one of the UK's biggest infrastructure investors.
But these jobs are at risk. A report from Robert Gordon University warned tens of thousands could be lost by 2030 without policy support. The solution lies in expanding renewables while avoiding an accelerated decline in oil and gas production.
We're already seeing warning signs. In May, Harbour Energy announced 250 job losses, and Ørsted paused the Hornsea 4 wind project—both citing rising costs and investment challenges.
We are not making the most of our natural resources. We need pragmatism to unlock them responsibly. As the UK seeks more energy investment, delays and job losses highlight the urgent need for stable policy.
The UK has set ambitious climate targets, and the industry shares that ambition. Producers have cut production emissions by 20 per cent since 2018 and aim to halve them by 2030, reaching net zero by 2050.
The same infrastructure and expertise that powers oil and gas today is enabling new technologies like carbon capture, hydrogen, and floating wind.
The Green Volt project off Peterhead illustrates this. Floating wind turbines will power oil and gas platforms and provide clean electricity to homes—using supply chains built through decades of experience.
The UK has the natural advantages to lead in offshore energy: the second-largest offshore wind capacity globally, geological potential for carbon storage, and remaining oil and gas reserves.
But without the right investment climate, these opportunities may go elsewhere. In Q3 2024, the UK imported nearly 40 per cent of its energy. Meanwhile, prices remain higher than in many European countries.
We need a balanced, pragmatic policy. A successful North Sea requires practical solutions that protect jobs, attract investment, and maintain control over our energy mix.
The offshore sector is investing in the future but needs stability and confidence from government: clear licensing, fair taxation, and a supportive investment environment.
This is a crucial moment. The decisions we make now will shape our energy future, job market, and climate leadership.
Let's choose a homegrown energy future.
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