A new report has warned that the oil and gas industry could lose up to 400 jobs every two weeks for the next five years unless action is taken.
The major report from Robert Gordon University said on Tuesday that the UK risks losing tens of thousands of offshore energy jobs by 2030 unless urgent and coordinated action is taken immediately.
In the worst-case scenario, it could mean the loss of up to 400 jobs a fortnight – the same number lost as a result of the recent Grangemouth refinery closure.
The report said: “Depending on which scenario will play out, the direct and indirect UK oil and gas workforce is expected to fall from 115,000 to between 57,000 and 71,000 by the early 2030s, with further declines to between 33,000 and 48,000 by 2035.”
North East Scotland MSP Douglas Lumsden called the report “alarming” and said it “lays bare the economic vandalism caused by both Labour and the SNP’s opposition to oil and gas”.
“Yes, the Labour Government have shamefully abandoned our oil and gas industry – but so too have the Nationalists,” the Scottish Conservative energy spokesman said.
“Like Keir Starmer, the SNP oppose all new oil and gas projects in the North Sea. In fact, the only real difference between the two on energy policy is that John Swinney’s party also, absurdly, oppose nuclear power.”
In a ministerial statement on Tuesday, acting minister for climate action Alasdair Allan acknowledged the “concerning series of announcements” about jobs in the region – including the most recent job losses at Harbour Energy in Aberdeen.
However, he claimed that most of the key policy areas around oil and gas are “matters reserved to the UK Government”.
He said Scottish ministers will “learn” from the report, but “hoped the UK Government will too”.
“Clarity on the direction of travel from the UK Government will be vital,” Allan said.
“[Planning for the needs of oil and gas] is not something we can do alone, and the UK Government urgently needs to provide certainty and stability in key areas”.
While some areas regarding energy are devolved to Holyrood, Allan added that others are reserved to Westminster and “we must get helpful decisions from the UK Government”.
He said the UK Government could provide a “full funding package” for the Acorn carbon capture and storage project in Aberdeenshire in next week’s comprehensive spending review.
He also urged Westminster to set an end date for the energy profits levy, which Allan said was “always supposed to be temporary”.
“The Scottish Government is clear in our support of the economy of the north east. We are working 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 and energy security,” Allan said.
“We appreciate that this report comes in the context of recent and concerning reports of job losses in the oil and gas sector.
“Workers are at the heart of Scotland’s just transition to net zero. The Scottish Government is working with the energy sector to plan for a multi-skilled workforce and enable our skilled offshore workers to carry their experience and expertise into different roles.”
‘Gap between policy and real world’
The report from Robert Gordon University captured the latest industry forecasts and employment data – highlighting the widening gap between policy intent and real-world outcomes for oil and gas.
One of the key findings claimed that there is “likely to be limited capacity” for the UK offshore renewables sector to accommodate the number of oil and gas workers looking for jobs as a result of industry decline before 2027.
The report added that it “may be necessary to sustain selective oil and gas activities until the early 2030s if Scotland is to retain its offshore energy workforce, skills, supply chain, and economic contribution”.
A spokesperson for the UK Department for Energy Security and Net Zero said: “We have taken rapid steps to deliver the next generation of good jobs for North Sea workers in a fair and orderly transition as part of our Plan for Change, including by making the biggest investment in offshore wind and two first-of-a-kind carbon capture storage clusters.
“This comes alongside Great British Energy, headquartered in Aberdeen, which has already announced a £300m investment into British supply chains, unlocking significant investment and helping to create thousands of skilled jobs.”
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