Jobs are being lost in the oil and gas sector “on a scale that would be unacceptable in any other sector”, the industry is warning.
In a message to Sir Keir Starmer, Offshore Energies UK (OEUK) says almost 1,000 direct and indirect jobs are set to be lost every month between now and 2030 unless there is a change of direction.
OEUK is touring the UK pressing home the message to elected parliamentarians, business groups and stakeholder organisations as it expands its calls for a homegrown energy future.
CEO David Whitehouse has written to the Prime Minister asking his government to make a simple choice and back homegrown energy as the UK’s total energy production hit a record low in 2024 and the nation imported over 40% of its total energy needs from overseas.
He emphasises that these imports come with higher emissions, fewer UK jobs, and no contribution to domestic taxes.
“This is a positive campaign for jobs, economic growth, and net zero,” he says.
“Our offshore energy industry can continue to support jobs across the nation, but only if we make the most of homegrown oil, gas and energy supply chains as we accelerate renewables.
“Current proposals to end new oil and gas licences and retain the current windfall tax are adding to a chorus of concern across a sector that adds value and wants to do more for Britain.
“There is a pragmatic path to the high growth, low carbon future we all want to see. With key decisions expected from the UK government in the coming weeks, every moment counts to champion the role of the North Sea in our day-to-day energy needs.
“The Prime Minister and the Chancellor recognise we will need oil and gas for decades to come. We want to make sure as far as possible, it comes from UK supplies and from UK workers.
“Without policy change the UK’s reliance on energy imports will only go up, not down and jobs will be lost.
“Today, we are seeing skilled jobs being lost on a scale that would be unacceptable in any other sector. Almost 1,000 direct and indirect jobs in the UK oil and gas sector are set to be lost every month between now and 2030. But with supportive government policies, it doesn’t have to be this way.”
He says the UK will need 13–15 billion barrels of oil and gas by 2050, in a scenario where all our net zero targets are met.?
“We are saying it’s right those needs are met by UK production as far as possible. With the right government policies in place, UK-based firms can produce half of this at home. We are campaigning for the UK to take this opportunity.
“The gas from the North Sea goes directly into the grid to heat 85% of homes across the country. Over 80% of our oil is refined either here in the UK or Europe. With war in Ukraine, North Sea oil is a key part of Europe’s energy security.
“This is not just about Aberdeen or Scotland. Communities from Shetland to Southampton, Grangemouth to Tyneside, Teesside, the Humber, and Merseyside all play vital roles in the UK’s energy supply.
“Over the summer recess while MPs are out in their constituencies, we want them to meet some of our 200,000 people spread up and down the country.
“It is time for everyone who cares about the sector and the communities it supports, everyone who cares about Britain’s industrial future, to get engaged and speak up.”
OEUK’s campaign comes ahead of conclusions from the government’s critical consultations on the North Sea and the UK’s energy future, including tax and oil and gas licensing. These conclusions will shape discussions at this year’s annual political party conferences and the content of the Chancellor’s landmark Autumn Budget.
OEUK says domestic oil and gas production can drive economic growth alongside renewables but only if the current 78% tax rate is reformed and business confidence returns.
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