Latest news with #OffshoreEnergiesUK
The Independent
5 hours ago
- Business
- The Independent
Ministers should apologise to oil and gas workers who have lost jobs, Tories say
The Government should apologise to oil and gas workers who have lost their jobs since Labour came to power, the Conservatives have said. Shadow energy minister Andrew Bowie said job losses and closures had already taken place as part of the planned switch to more environmentally friendly energy sources. He said 3,000 had already been cut since Labour came to power. He referred to a variety of projected job loss figures, including the Robert Gordon University in Scotland predicting 400 jobs would go every fortnight. Meanwhile energy minister Sarah Jones said oil and gas 'were not the jobs of the future'. Mr Bowie said: '(Offshore Energies UK) predicting 42,000 job losses unless there is significant policy change. 'The Just Transition Commission warning 120,000 jobs may go by 2030, and no prospect of a just transition because the supply-chain are just upping sticks and moving overseas.' If borne out figures produced by the university, based in Aberdeen – a city long linked to the oil and gas industry – would be the equivalent to job losses from the Grangemouth refinery closing every two weeks. Ms Jones replied: 'The North Sea will continue to play an important role for years to come, which is why we are keeping open existing fields for their lifetime. 'The truth is, this is a declining base, and (Mr Bowie) knows this. This is not where the jobs of the future are going to be. The jobs of the future are in the clean energy transition, which we are investing in at pace.' Ministers were also asked by MPs about the future of the Rosebank oil and gas field near the Shetland Islands, off the north-east coast of Scotland. The consent to develop it was declared unlawful by the courts in November 2024. Energy minister Michael Shanks said his department planned to publish guidance on emissions potentially created by Rosebank. Mr Bowie asked: 'In the dim and distant past in 2023, the secretary of state described the Rosebank oil field as a colossal waste of taxpayer money and climate vandalism. Does he still agree?' Energy Secretary Ed Miliband said: 'As with any application, there's a process my department will go through and we'll look through any applications in a fair and objective way.' Conservative MP for Gordon and Buchan in Aberdeenshire, Harriet Cross asked why the Government had not met Cabinet Office targets to respond to a consultation on the guidance for emissions from offshore oil and gas projects. The Government says a response should be published within 12 weeks, but it is now 22 weeks since it closed on January 8. Ms Cross said: 'When will the department publish the guidance? Because it is causing delays to projects in the North Sea today.' Ms Shanks replied: 'It's a very complex issue as I'm sure she'll understand. We will publish the response and indeed the process that will now be able to be put into place as soon as possible, and then developers that wish to reapply will be able to do so.' Labour MP Brian Leishman (Alloa and Grangemouth), who has been a vocal critic of the Government's response to Grangemouth's closure asked if the Government would take an ownership stake in any green energy infrastructure. Referring to the Acorn carbon capture and storage scheme north of the border, Mr Leishman said: 'Acorn would go some way to reindustrialising areas of Scotland and that is much needed. 'And I welcomed the Government committing £200 million from the national wealth fund for future industry at Grangemouth in my constituency.' He continued: 'In order to avoid us again being in a precarious position of private capital of foreign government ownership dictating our future energy industries, does the Government plan on taking any ownership stake in the industries that are going to be coming at Grangemouth?' Energy minister Sarah Jones replied: 'We have lost thousands of jobs under the previous government whether it's in ceramics, whether it's in chemicals, whether it's in steel. 'And the previous government saw foundational industries really through the rear-view mirror, but we know they're going to forge our future and that's why we're rushing to get to clean energy by 2030, so we can bring those prices down.'
Business News Wales
5 days ago
- Business
- Business News Wales
Comprehensive Spending Review 'Must Back a Homegrown Energy Future'
Offshore Energies UK (OEUK) is calling on the Chancellor to prioritise major UK energy projects at the Comprehensive Spending Review (CSR). Carbon Capture and Storage (CCS) is a key technology for decarbonising UK industry for which the CSR could unlock fresh business investment and jobs, the organisation says. The Humber's Viking and Northeast Scotland's Acorn projects have the potential to invest over £25 billion by 2035 with private sector capital, potentially creating over 30,000 jobs, it added. Acorn is the only project of its type in Scotland and is critical for futureproofing a variety of industrial, power and energy production companies to meet climate goals and prevent further deindustrialisation, says OEUK. Located in the Humber, the UK's most industrialised region and largest emitter of Co2, the Viking CCS project will create thousands of jobs in the region and play a vital role in supporting the UK to meet its target to capture 30 million tonnes of Co2 annually by 2030, says OEUK. OEUK has also urged government to deploy up to £7.5 billion in the Contracts for Difference (CFD) scheme to grow floating and fixed offshore wind over the next three auction rounds (AR7 – AR9) and help industry meet Clean Power 2030 targets. The UK Government is expected to open AR7 this summer. While the CSR addresses departmental spending and not revenue-raising plans, OEUK said a competitive fiscal regime for oil and gas remains essential to an ever-integrating industry, which is one of the UK's most important economic assets. Industry needs globally competitive tax and licensing regimes for oil and gas so the UK can lessen its reliance on imports and sustain jobs, supply chains and economic value as it scales up renewables, it said. The CSR should help the UK's offshore energy and other industrial sectors unlock economic growth and strengthen supply chains while developing world leading companies, said OEUK. Today, the UK offshore energy sector supports over 200,000 jobs in oil and gas alone and generated £25 billion in gross value add in 2023. Harnessing the potential of the UK's existing and emerging energy sector could increase this value much further, says OEUK. David Whitehouse, OEUK's CEO, said: 'These are critical times and our sector can help government lay a credible path to economic growth. This starts with support for homegrown energy. 'We must work together to unlock business investment across UK energy opportunities. This includes the build out of renewables alongside the responsible production of oil and gas. 'We are asking government to deploy the previously announced funding for carbon capture and storage and announce a clear funding envelope for Track-2 and beyond. 'This is needed so key projects like Acorn in Scotland and Humber-based Viking can go ahead, create jobs, help British industry decarbonise and importantly invest in Britain. 'In a country that's importing over 40% of its energy, we need more wind, hydrogen, oil and gas, and CCUS projects built here. This is investment the country needs for growth.' OEUK's CSR asks are: Unlock private sector investment in carbon storage and capture, offshore fixed bottom wind, offshore floating wind, and hydrogen. Provide a clear long term funding envelope as part of the Government's Clean Power 2030 goals to deliver the potential of these technologies. Provide efficiently resourced departments and efficient regulators to progress opportunities and activity at pace. Support UK specialist technology hubs to drive the technology and innovation required for a successful homegrown energy transition. Support expansion of the Skills Passport and cross sector skills demand planning to ensure that the UK has the skilled people to deliver on the offshore energy growth opportunity
Business News Wales
03-06-2025
- Business
- Business News Wales
OEUK Calls for Windfall Tax Reform to Boost UK Energy Investment
Trade body Offshore Energies UK (OEUK) has called on the UK Government to remove the windfall tax on oil and gas profits by 2026. It is calling for it be replaced it with a competitive long-term mechanism that responds to future price shocks to encourage what it says is necessary investment in the UK's energy future. The call comes as the UK Government's consultation aimed at developing a predictable response to future price shocks closed. The Energy Profits Levy (EPL), known as the windfall tax, was introduced in response to a spike in global energy prices in May 2022. It's an additional tax on the profits made by companies producing oil and gas from the waters off the coast of Britain, with the top rate of tax at 78 per cent. Independent data from the Office of National Statistics confirms that the profits for those investing in the UK oil and gas sector have fallen to negative levels, but the tax remains, which OEUK says is holding back vital investment across the UK's energy landscape. Pointing to the UK's increasing reliance on imported energy, OEUK said that a pragmatic oil and gas tax regime would deliver more home-produced energy, protect jobs in the industry and across the wider economy, and strengthen the UK's energy sovereignty. In 2024, the UK's total energy production was at an historic low, with over 40% of UK's energy needs met through imports. Without stimulating investment, the UK could be reliant on imports for the majority of its oil and gas demand by 2030. OEUK has shown that supportive government policy towards UK oil and gas production increases the likelihood of a successful domestic expansion into other energy forms including floating offshore wind, carbon capture and hydrogen. OEUK is pressing the UK Government to act in the next Autumn Budget. It's calling for a mechanism to be introduced in 2026 that responds to price shocks and gives companies certainty to invest long term. OEUK chief executive David Whitehouse said: 'Last year, the UK was dependent for almost 40% of total energy demand on imported energy, and UK energy prices are higher than many of our counterparts. In an uncertain world that is not the place to be. 'In a country where today 75% of our energy comes from oil and gas, the solution is the responsible production of our own oil and gas from the North Sea, alongside the build out of renewable energy. It should not be a debate about one form of energy versus another – we need it all. 'We welcomed the Government's decision to launch this fiscal consultation and we're engaging constructively in the process. 'The sector needs action now to secure jobs, boost energy security, and build for the future. That means a commitment from government to deliver a mechanism in 2026 that creates a predictable response to future price shocks. 'This is what is needed to unlock investment in UK energy – oil, gas, renewables, hydrogen, and carbon capture. 'The North Sea is a strategic national asset that has powered the UK economy and homes through for the past 50 years and it is only right that it is managed as such.'
Scottish Sun
14-05-2025
- Business
- Scottish Sun
We need our North Sea oil and gas to power the economy
'What is the point of these companies staying here if they're being taxed out of existence?' PLEA TO PM We need our North Sea oil and gas to power the economy THE future of the North Sea Oil industry hangs in the balance as the UK rushes toward Net Zero. However experts insist that even with renewable energy sources, we will still need oil and gas for decades to come. 4 North Sea Oil platforms. 4 Mike Tholen, policy director of Offshore Energies UK. 4 Sir Keir Starmer, the Labour Prime Minister. North Sea Oil provides £20 billion a year in economic value to the UK but the Westminster Government has closed its consultation on the industry's future while another on the energy windfall tax closes later this month. Mike Tholen, policy director of Offshore Energies UK, pleads the case to help the our home grown oil industry before more jobs are lost forever. THE Prime Minister Keir Starmer pledged his government would support jobs and families. Scotland's offshore energy family is in urgent need of that support right now. Last week alone hundreds of people were told they had lost their jobs. Harbour Energy in Aberdeen was forced to cut 250 onshore roles – a quarter of its workforce. Belmar Engineering, with 50 years of history supporting the UK global leading subsea industry, went into administration with the loss of more skilled jobs. There was further bad news when one of the world's biggest wind farm companies Orsted halted work on the Hornsea 4 wind farm in the sea off Humberside. They say they cannot make the sums add up. Warning lights are flashing but there is another path to our energy future. One that puts homegrown production at the heart of UK industry, supporting domestic oil and gas production alongside the build out of renewables. We need new oil and gas licences to show firms and the world the North Sea is open for business. That will also unlock more cash for companies to plough into renewable energy projects. We need to end the Energy Profits Levy - known as the windfall tax - which is driving away oil and gas producers that can't pay 78p in the pound in tax in a fiercely competitive world What is the point of these companies staying here if they're being taxed out of existence? Much better for them to move overseas. But that means the UK becomes even more dependent on imported energy which comes with a much higher carbon footprint. As the Prime Minister has said, the UK will continue to use oil and gas for decades to come. Our choice is whether we produce that oil and gas here or increasingly rely on imports. In an unpredictable world that is not the place to be. The North Sea remains a strategic national asset that has powered the UK economy and homes through oil and gas for half a century. Last year the UK imported almost 40 per cent of its total energy even though we still have significant untapped oil and gas reserves in the North Sea. Apart from these reserves we also have the second largest offshore wind capacity in the world and a pipeline of new opportunities. We have the geology to store more carbon dioxide under the North Sea than the country has produced since the industrial revolution. Building on these strengths, the UK is uniquely placed to support our energy future. But this is not the experience of many people working in our offshore energy sector and across industrial Britain. In recent weeks, my team and I have travelled across the country and spoken to hundreds of people in public meetings in Falkirk, Newcastle, and Humberside, as well as here in Aberdeen. These are communities dependent on the offshore energy industry. The message was clear - seeing UK industry shutting down to rely simply on imports is not the way forward. Yes, people want to see action on climate change, but they want that done in a way that supports jobs and value in our economy. And in a way that drives energy prices down. With practical policy, domestic energy production could support half of UK demand and add another £165billion of value to the UK economy, supporting jobs, and the very supply chain companies needed to build offshore wind, carbon storage, and hydrogen projects. This is not a black and white debate on one form of energy versus another. We reject the argument that it's wind electricity or oil and gas. The people of our industry and the public deserve better than that. We need all the homegrown energy we can get to keep the lights on, protect us from ever greater reliance on expensive imports and preserve the 200,000 plus jobs that depend on our sector. Our industry provides £20 billion a year in economic value to the UK. There are big decisions to be made by politicians. The UK Government just closed its consultation on building the North Sea's energy future. In a fortnight, another key consultation on the future of the Energy Profits Levy will close too. The UK's new industrial strategy is due for publication later this Spring. It is expected to focus on how better to manage energy production and use so industry has a fighting chance. We are on the brink of critical decisions which will impact hundreds of thousands of lives. For the future of our North Sea and for people and families across the UK, we must get this right. 4 North Sea Oil is worth £20 billion a year to the UK economy.
Glasgow Times
11-05-2025
- Business
- Glasgow Times
Glasgow event to see launch of offshore wind report
The Offshore Wind Insight Report, created by Offshore Energies UK (OEUK), will be unveiled at the All-Energy Conference in a breakfast briefing on May 15. The event, sponsored by Deloitte, will take place at Glasgow's SEC. Read more: 'Long-standing' Glasgow business for sale after more than 20 years The report will focus on what is needed to deliver Clean Power 2030 and the future growth of floating offshore wind. OEUK represents more than 400 organisations and businesses across the UK, including those involved in offshore oil, gas, carbon capture and storage (CCS), hydrogen, and wind. The report launch will be followed by three roadshows across the UK. The first will be held at Hull's Village Hotel on May 20, followed by the Norfolk Showground Events Centre in Norwich on May 22, and finally the Cavendish Conference Venue in London on June 4. The breakfast briefing and roadshows for OEUK's Wind Insight report will offer a platform for people to hear more about the government's target of creating a clean power grid by 2030, plus analysis of potential opportunities and the policy framework underpinning this objective. Speakers and panellists for the launch of the Wind Insight report at All-Energy include Colin Maciver, senior director at Cerulean Winds, Sarah Knight, senior development manager (decarbonisation) at Crown Estate Scotland, and Susan McDonald, energy transition lead at Deloitte. Read more: Former STV presenter to compete in international beauty competition Thibaut Cheret, wind and renewables manager at OEUK and lead author of the report, said: "The government's Clean Power 2030 (CP30) target will need between 43 and 51 GW of installed capacity in offshore wind by 2030. "A recent round of offshore wind leases released by Innovation and Targeted Oil and Gas (INTOG) will help decarbonise offshore oil and gas production whilst accelerating deployment of the first projects globally at commercial scale but the pace needs to quicken. "Our report will outline what steps need to be taken to achieve this." Tickets for the breakfast briefing in Glasgow are available from the OEUK website.
