'This is a call to arms to ensure North Sea remains an energy powerhouse long into the future'
Budget marks a moment in history for a cornerstone of the UK economy, writes Energy Minister
Today is the start of a new era for the North Sea. We have listened to the calls of workers and communities to deliver a plan for the future of the North Sea.
For more than 60 years, its workers and communities have helped to power our country and the world. I had the privilege of joining BP to mark the 60th anniversary of the first North Sea licence last year.
Looking back at that historic moment when coal made way for gas from British shores, it was the leadership and ingenuity of the energy industry which drove us forward and made the North Sea one of Britain’s great industrial success stories.
Now we find ourselves at another turning point.
The North Sea’s basin has been in natural decline for more than 20 years, with around a third of direct jobs lost in the last decade. Burying our heads in the sand and ignoring this challenge will not save jobs or create new ones.
We refuse to accept the status quo of the last decade, which has seen jobs lost and other countries get ahead in the technologies that should be safeguarding the industry for the future.
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The time to act is now, to invest and build for the future. That’s why after years of inaction we have listened to the views of workers, communities, trade unions and businesses, and set out a pragmatic and ambitious plan that will protect jobs now and create the next generation of skilled jobs for oil and gas workers.
‘Pragmatic’ measure for limited oil and gas production
This plan delivers on our manifesto commitment to manage existing oil and gas fields for their lifespan, while not issuing new licences to explore new oil and gas fields, in line with the science on fossil fuels. But it also takes a pragmatic view by delivering Transitional Energy Certificates which allow for limited production in areas already part of an existing field, or in areas adjacent to already licensed fields, linked via a tieback. This will help to maintain existing fields and ensure they remain economically viable.
Our plan is based on a simple truth; the North Sea is our greatest energy asset, from its remaining oil and gas reserves that will be with us for decades to come - to its strong winds, vast waters, highly skilled workforce and deep supply chains.
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At the same time, we are actively scaling up new energy industries, because we know this is the best long-term route to energy security and good jobs, including funding for the Acorn, Viking and East Coast carbon capture clusters in the North Sea, the UK’s first regional hydrogen network, and establishing Great British Energy in Aberdeen, which last week announced its first stake in Pentland Floating Offshore Windfarm off the coast of Dounreay.
North Sea Jobs Service
On top of this, this week the Chancellor also set out up to £14.5 million in funding for Grangemouth that marks the next step in our work to secure a long-term future for the site of the former oil refinery, which will work alongside the National Wealth Fund’s £200 million commitment to support investment opportunities at the site.
We are also launching a new world-leading North Sea Jobs Service - to help the existing workforce access new opportunities in growth sectors across the economy, from clean energy and transmission networks to advanced manufacturing and construction. This is about providing end-to-end careers support for the current skilled workforce seeking new opportunities in every part of Britain’s fast-expanding energy and industrial sectors. For those looking for new opportunities this service will support them every step of the way, from clarity on future roles, to training, and all the way to securing an offer for a good job.
With this plan, we are refusing to accept the status quo of the last decade which saw thousands of jobs lost with no plan. As Energy Minister I have been in Aberdeen more than anywhere else to listen to industry, workers and communities and the North Sea Plan we have published is our answer to that. Now we need everyone who cares about the North Sea to step up and help us deliver it. This is a call to arms for our country, and moment in history to make sure the North Sea remains an energy powerhouse long into the future.
Michael Shanks is Energy Minister and the Labour MP for Rutherglen
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