In a stark warning to political leaders, Offshore Energies UK (OEUK) has advocated for a unified approach to Scotland’s energy landscape, emphasising the need to integrate both renewable and fossil fuel sectors. As the country gears up for its upcoming elections, OEUK’s call comes in the wake of significant challenges facing Scotland’s offshore energy industry, which plays a pivotal role in the national economy.
A Call for an ‘All-Energy’ Strategy
OEUK has urged the Scottish Government to adopt an “all-energy” strategy, arguing against the categorisation of energy sources into “clean” and “dirty” sectors. The organisation warns that political factions must avoid deepening divides that could jeopardise Scotland’s energy independence and economic stability. The industry body is particularly concerned about the potential repercussions of sidelining fossil fuels, which remain integral to the country’s energy portfolio.
Highlighting the economic stakes, OEUK pointed out that in 2024, the UK’s offshore energy sector generated over £36 billion, supporting more than 240,000 jobs nationwide, with Scotland alone accounting for 128,400 of those positions. The economic ramifications extend beyond mere figures; they involve the livelihoods of families and the sustainability of communities across Scotland.
The Risks of Policy Choices
Despite Scotland’s rich natural resources, OEUK noted that over 40% of the UK’s energy was imported in 2024, marking the highest level of reliance on external sources in over a decade. This trend, the organisation argues, is primarily driven by policy decisions rather than geological limitations, posing a significant risk to the nation’s industrial future. David Whitehouse, OEUK’s chief executive, stated, “These are not just statistics; they represent livelihoods, families and the lifeblood of towns and cities across our country.”
The call for a balanced approach comes amid recent closures of key facilities, including the Grangemouth refinery and the Mossmorran chemical site, which have resulted in the loss of skilled jobs crucial to the Scottish economy. Whitehouse emphasised the potential for a re-industrialised Scotland, where decarbonisation initiatives coexist with robust domestic oil and gas production.
The Need for a Pragmatic Transition
OEUK advocates for a pragmatic energy transition, calling for a regulatory framework that incentivises investment in both traditional and renewable energy sectors. This includes the approval of projects such as the Rosebank and Jackdaw oil fields, alongside the development of world-class renewable technologies and infrastructure. The group also urges immediate reforms in transmission charges and a commitment to carbon storage solutions, such as the Acorn project.
Energy Secretary Gillian Martin echoed these sentiments, emphasising the necessity for a balanced transition that recognises the ongoing value of the North Sea’s oil and gas resources while simultaneously fostering the growth of renewables. Martin highlighted the significant economic potential of the renewable energy sector, which promises to generate jobs and attract investment while reducing reliance on fossil fuels.
A Time for Action
As the political landscape prepares for elections, both OEUK and government officials are calling for urgent action from Westminster to support Scotland’s energy transition. The removal of the energy profits levy, which is perceived as a deterrent to investment in North Sea oil and gas, is a crucial step towards ensuring a just transition that safeguards skills and sustains economic growth.
The Scottish Government has already allocated over £120 million through its Just Transition and Energy Transition Funds, aimed at supporting the North East’s shift towards net-zero energy. This funding is designed to create green jobs, foster innovation, and ensure a skilled workforce for the future.
Why it Matters
The future of Scotland’s energy sector hangs in the balance as political leaders grapple with the complexities of energy policy. A cohesive strategy that embraces both fossil fuels and renewables is essential not only for economic resilience but also for the protection of livelihoods across the nation. The decisions made in the coming months will shape Scotland’s energy landscape for decades, determining whether it can harness its natural resources effectively while transitioning towards a sustainable future. The call for unity among political factions is not just a plea for collaboration; it is a vital necessity for safeguarding Scotland’s economic and energy security.
