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Blueprint revealed to save North Sea industry and secure Aberdeen’s future

A major new report sets out ways to save existing skills, maximise oil reserves AND build a new renewable future.

Could the sun set on the oil industry before the renewable replacements have been secured? Image: DC Thomson
Could the sun set on the oil industry before the renewable replacements have been secured? Image: DC Thomson

A new blueprint to save the North Sea as an industrial base for the future warns the window of opportunity is “closing fast”.

But experts behind the far-reaching report to government today say it is still possible to transform fortunes – if political leaders act quickly.

Crucially, the findings make the case to maximise oil and gas now while building towards a future as a renewable powerhouse.

“Unless governments act swiftly, there will be no transition,” the North Sea Transition Taskforce report warns.

“The old North Sea will fade away, along with the skills of individuals and the entrepreneurial skills of businesses in the North Sea supply chain.”

In a recipe to save thousands of jobs for the future in Aberdeen, the north-east and across the UK, the taskforce makes key demands including:

  • Replace the offshore windfall tax with a “viable” regime before 2030.
  • Set out a clear plan for continued oil and gas extraction.
  • Push ahead with cash for offshore wind, carbon capture and hydrogen.

The call for rapid action on carbon capture will delight north-east industry figures who piled pressure on the Labour government to green-light plans near Peterhead.

The report, revealed on Sunday night, is now with the UK Government – and includes dire warnings if political leaders dither.

Philip Rycroft, left, and Shevaun Haviland were on the North Sea Transition Taskforce. Image: Kenny Elrick/DC Thomson

It warns confidence is “draining” from the North Sea and brands government action so far as “opaque” .

Part of the plan is a call to keep up domestic production of oil, regardless of the push towards “net zero” and more renewable sources.

More oil – and renewables

The taskforce wants a simpler planning system for new offshore projects.

It asks for closer working with foreign neighbours on a North Sea grid to help energy flow.

And it wants incentives for “green” hydrogen, along with a big push to make carbon capture commercially viable.

Taskforce leader Philip Rycroft – a former senior civil servant in the UK Government – says politicians need to raise their game.

“The North Sea Taskforce has established beyond doubt that there are widespread concerns that a gap is opening up between the North Sea as it is now and as it might be,” he said.

“Government needs to act now to restore investor confidence in the future of the North Sea, treat this as a national mission and put in place a long-term and coherent plan for a just transition.”

Energy Secretary Ed Miliband, on a visit to Aberdeen last year, is being urged to adopt the report findings. Image: Kenny Elrick/DC Thomson

The taskforce brought together heavyweights including director general of the British Chambers of Commerce Shevaun Haviland, and professor Paul de Leeuw, director of the energy transition institute at Robert Gordon University.

‘Can’t ignore climate change’

Aberdeen & Grampian Chamber of Commerce policy director Ryan Crighton said the report is not a “nostalgic plea” to extend the age of oil and gas.

“It’s a case for managing the overlap – ensuring that the decline of fossil fuels is matched by the rise of clean alternatives, with no gap in between,” he said.

The UK Government controls decisions on offshore oil and gas licensing and the linked taxes.

An energy department spokesman said steps are already being taken for a fair transition, alongside the launch of Great British Energy, headquartered in Aberdeen to unlock “significant investment” in clean power projects.

A Scottish Government spokesman said: “We’re clear in our own support for a just transition for Scotland’s oil and gas sector, which recognises the maturity of the North Sea basin and is in line with our climate change commitments.

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