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North Sea taskforce launched to safeguard ‘tens of thousands of jobs’

Supply chain businesses, unions, environmental groups, and energy policy experts will form the new taskforce.

An estimated one in five jobs in Aberdeen is linked to the offshore energy industry
A new taskforce has been formed to help safeguard the future of the North Sea. Image: Wullie Marr/ DC Thomson

A North Sea Transition Taskforce has been launched in Aberdeen in a bid to secure the sector’s long-term future and protect jobs.

Supply chain businesses, unions, environmental groups, and energy policy experts will come together to form the new taskforce.

It was first proposed by the Aberdeen and Grampian Chamber of Commerce (AGCC) last year following an industry survey alongside KPMG and ETZ.

Led by Philip Rycroft, a former permanent secretary in the UK government, the taskforce aims to “safeguard tens of thousands of jobs” and secure the North Sea’s long-term future.

North Sea plays ‘vital role’ in UK energy supply

Mr Rycroft believes questions regarding licensing, decommissioning and investment need to be answered while industry is supported with the right legislation to deliver the energy transition.

He said: “There is no doubt the North Sea will continue to have a vital role in the UK’s energy supply for many years.

“However, the approach to moving away from oil and gas to low carbon industries is a careful balancing act.

North Sea plays a ‘vital role’ in UK energy supply. Image: Shutterstock

“Without a long-term plan, decision-making will continue to be piecemeal, making it harder to provide stability for all of those impacted.”

The taskforce will hold its first meetings before the end of the year and is due to publish its recommendations for the Scottish and UK governments next spring.

Speaking about Mr Rycroft’s appointment, Shevaun Haviland, director general of the British Chambers of Commerce and the executive director of the new North Sea Transition Taskforce, said: “The importance of the North Sea cannot be overstated; it is a national asset and this deserves a national conversation.

“The transition is vital for Net Zero, for the UK’s energy security and long-term growth, but it must also preserve the roles of hundreds of businesses and their tens of thousands of skilled workers.”

Tens of thousands of jobs at risk

In a report published in September, the BCC warned failure to secure an orderly transition risked 200,000 jobs directly and indirectly reliant on North Sea industries, which risked a repeat of the devastating impact on communities last seen in the coalfield closure programme of the 1980s.

Maggie McGinlay, ETZ Ltd chief executive, said: “Our clear focus is on repositioning the north-east of Scotland as an internationally recognised energy cluster focused on the delivery of Net Zero.

“In order to accelerate the commercialisation of offshore wind,  green hydrogen and carbon capture and storage, we must be able to draw upon the skills and expertise of our world class supply chain and that is why this newly established taskforce is a welcome development.

“Ensuring we protect our greatest asset until the vast renewables opportunity on our doorstep is available at scale is vital if we are to achieve a managed and just transition.”

North Sea Transition Taskforce a ‘significant opportunity’

The AGCC’s 40th Energy Transition Survey showed that confidence in the North Sea over the next one to five years is at an all-time low, claiming it is worse than at any point during the financial crisis, oil price crash or the Covid-19 pandemic.

Russell Borthwick, Aberdeen and Grampian Chamber of Commerce chief executive, said: “There are great opportunities for Aberdeen to become a globally recognised renewable hub and ensure we protect our skilled workforce, maximise inward investment and decarbonise.

Russell Borthwick.
Russell Borthwick. Image: Kami Thomson/DC Thomson

“But we need to act now or risk sleepwalking into repeating the mistakes of the 1980’s when the coalfield closures blighted whole communities for generations.”

Paula Holland, KPMG in Aberdeen senior partner, added: “The recent confirmation of the location of GB Energy in Aberdeen, alongside the announcement of the North Sea Transition Taskforce, needs to be seen as a significant opportunity.

“It can only enhance the view that the region will continue to be the hub of the energy sector in the UK. However, the next few years are critical in turning local grit and long-term optimism into action.”

Conversation