LOCAL ELECTIONS 1st May 2025

09:30 Kirsty Blackman (SNP)

We have all seen just transition plans from many organisations, including the Government, but nobody seems to be saying, “This is the just transition plan. This is what we are following. This is where we want to go.” A commitment from the Government that they would be willing to look at the key asks from the OEUK and in the North sea transition plan would make a big difference. We need to say, “This person is designated the just transition mandarin”—or however we want to style them—“and they are in charge. This is who we go to if we have a concern. This is who will ensure that decisions are being taken across Government to protect these jobs.”

There are other things the Government could do in terms of the £28 billion commitment and the spending review. There will be uproar if that £28 billion is cut during the spending review. I beg the Government not to cut that money. There is a Department for Energy Security and Net Zero consultation that has closed, and there is another consultation on the fiscal regime. My slight concern on those is about the timing. Oil and gas companies will make final investment decisions and plans for next year perhaps in August or September this year. If we do not have an outcome by that point, particularly on the fiscal regime, companies will say things are too uncertain and will not invest next year. Again, we will see the loss of jobs as a result.

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09:49 Brian Leishman (Labour)

Regarding the refinery, I do not want to hear anyone insult the intelligence of the Grangemouth workers and utter the phrase “just transition”. Jobs will be lost, and the new energy industries are just not ready. That is the very definition of an unjust transition. I also do not want the Government to say that the £100 million growth deal for Falkirk and Grangemouth is the solution—not when the refinery is worth over £400 million a year to the Scottish economy. The £200 million from the National Wealth Fund that the Prime Minister announced at the Scottish Labour conference to entice new industries is welcome, but that money is conditional on private capital investment coming in with no planned Government ownership, meaning that workers, communities and Scotland will be in mercy of private capital and foreign ownership—again. Why are the Government not learning any lessons?

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09:53 Harriet Cross (Conservative)

The impacts of a poorly managed transition will be felt not just in Aberdeen, Aberdeenshire or north-east Scotland; the entirely of the UK will suffer. No other UK cluster has the energy capability of north-east Scotland—the skills, supply chains, university specialisms or experiences. If we in north-east Scotland lose our brightest, best, most innovative and most experienced energy workers in the transition from oil and gas to renewable energies, they will be lost to the whole of the UK.

We must not pretend, or mislead ourselves and others into thinking, that transferring to renewable energies is in any way incompatible with continuing to produce oil and gas from the North sea. It is not. More than that, continuing to support our domestic oil and gas sector will only help any transition to renewables to succeed. Will we still need oil and gas for years to come? Yes. It seems that that point is largely uncontested, and the Government have certainly confirmed it. So why—I still have not heard a coherent answer to this—are they effectively ensuring that we do not have a viable oil and gas sector? Removing investment allowances, increasing and extending EPL levels beyond those for any other mature basin and banning new licences do not support the sector, help domestic supplies or protect jobs.

When I speak to people involved in or with the sector, the vast majority talk about timing. Timing is the most crucial thing in supporting the energy transition, and I would like the Minister to reflect on it in his remarks. For offshore wind, for example, the RGU Energy Transition Institute estimate is an increase from approximately 11,000 jobs in 2024 to 46,000 in 2025. On the face of it, that looks great—35,000 new jobs—but more or less all those jobs will come on stream post 2030, by which time, on the current trajectory of job and investment losses, we are expected to lose 60,000 oil and gas jobs, 50% of which will be in Scotland. No skills passport will bring those jobs back. That is not a fair or just transition; for north-east Scotland, it is a disaster waiting to happen.

The issue is not just when the jobs need to come on stream; it is the type of jobs, as well as whether companies in the north-east will have remained afloat in the interim. At the moment, there are two main categories of jobs: the vast majority of our energy work is in operational activities, such as the day-to-day operations of the industry, while the remaining third—roughly—are in the capital expenditure, such as the building and manufacturing of kit. However, the manpower requirements for running and operating a rig far exceed those of, for example, a wind farm. Until the UK can increase its manufacturing base for wind infrastructure, allowing jobs to be created in capital work rather than just operational work, there is no prospect of transferring tens of thousands of workers from oil and gas to wind or other renewable energy sectors.

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09:59 Barry Gardiner (Labour)

This debate takes place at a key point in the transition away from oil and gas production in the North sea. With the Government’s consultation on building the North sea’s energy future under way, and with the clean energy mission driving forward at some pace, securing clean energy generation and the wealth creation and jobs that will go with it is non-negotiable if we are not to repeat the same unjust transition as before.

The current North sea transition deal is not fit for purpose. It places far too much responsibility on the companies themselves. Those companies are not delivering what is needed: a mere seven out of the 87 North sea oil and gas operators are even considering investment in renewable energy by 2030. We cannot outsource the future of our workers and our energy security to the very companies whose current business model is failing. We need a radical shift. The time for a coherent deal for the North sea is now. It is vital that the Government commit to bringing forward a bold and ambitious plan with the urgency that this time demands.

The unjust transition at the refinery in the constituency of my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) and the situation in Port Talbot are warning signs that early Government intervention and investment are paramount if we are to secure the future of our workers. They deserve to experience a smooth transition. Over 90% of the UK’s oil and gas workforce have transferable skills, but they report a lack of support for transitioning into other industries. The energy skills passport is a start, but workers are footing the bill for their own retraining, which often duplicates their existing qualifications. The Government need to commit to streamlining the process. Crucially, the Minister should meet with the Treasury to deliver the £335 million-a-year training fund that unions and climate groups are rightly calling for—a fund that provides paid time off for workers to retrain.

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10:12 Seamus Logan (SNP)

The just transition must be both just and fair, so that sectors and communities are not left on the industrial scrapheap as they were during the Thatcher years. If the just transition means anything, it must mean something for the north-east of Scotland. It cannot be left to the market alone to sort those things out. To give one small example, I have recently been lobbied by the plumbing industry. A crisis is coming in a few years’ time because the financial problems facing the training and education sector mean that it cannot possibly meet its demands. One thing the Minister could do is nudge the private sector to invest in apprenticeships in those areas, so that we are preparing alternatives for young people as North sea basin declines.

The Scottish Government set up their Just Transition Commission in 2018 to provide scrutiny and advice on delivery. Northern Ireland is currently consulting on setting up its own commission; Wales established its commission in 2013. Where is the UK-wide just transition commission? The UK Government launched their North sea consultation in March as

The Acorn project, the new power station at Peterhead and the investments in key strategic ports at Peterhead and Fraserburgh are key components of the just transition. A Robert Gordon University review of UK offshore energy workforce skills transferability showed that 90% of the oil and gas workforce have transferable skills to work in adjacent energy sectors. The just transition needs buy-in from the UK Government. It cannot be left to market forces, which are even more unpredictable in the current political climate, thanks to Trump and the ongoing energy crisis, and of course Putin too.

Households are facing a third rise in energy costs since Labour came to power. Indeed, the vast majority of the UK’s offshore wind capacity is owned by companies outside the UK. The typical North sea turbine contains more than three times as much material from abroad as it does from domestic manufacturers. The wider context is an energy market that is, paradoxically, working against both the interests of the consumer and the companies and investors who want to realise the green energy industrial revolution. If Members do not believe me, they should take a deep dive into zonal pricing.

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10:17 Carla Denyer (Green)

I welcome the opportunity provided by the hon. Member for Aberdeen North (Kirsty Blackman) to debate transitional support for oil and gas workers, who are already bearing the brunt of the North sea’s disorderly decline as reserves have dwindled without a clear agreed plan. In my first ever job in the renewable energy sector in 2008—17 years ago now—I co-wrote a report on the huge potential of British North sea ports to move into the renewable energy industry as locations where offshore wind turbines and associated infrastructure are manufactured and then shipped. While some of that has been realised, a lot of opportunities were missed as jobs went overseas. The need for action is now urgent.

We already know that new oil and gas projects are incompatible with averting the worst impacts of climate catastrophe. If the goal is also to provide North sea workers and communities with the long-term security that they deserve—and it must be—new oil and gas fields are still not the answer. Even with hundreds of new licences issued and new field approvals granted in the past decade, jobs supported by the UK oil and gas industry have more than halved already, and multiple sources predict a continued decline. We must protect those workers and provide security for that workforce, but in a declining basin that will not come from desperate attempts to double down on new drilling.

As the hon. Member for Brent West (Barry Gardiner) said, alarmingly, just seven of the 87 North sea operators plan to invest anything at all in UK renewables between now and 2030. Instead, these companies are on a sunset ride, maximising profits from oil and gas while they still can, regardless of what that means for the rest of us. That lack of investment has clear consequences for workers, who are demanding clear pathways out of high-carbon jobs and into the renewable energy industry, where they know they have a longer-term future.

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10:22 Jim Shannon (DUP)

The Department for Energy Security and Net Zero digest of UK energy statistics shows a 72% reduction in UK oil and gas production between 1999 and 2023, and the North Sea Transition Authority projects an 89% drop in UK oil and gas production by 2050. These statistics cannot be ignored; they show a trend. Analysis by the Office for National Statistics shows that direct jobs in oil and gas extraction fell by around a third between 2014 and 2023. Meanwhile, the findings of the 2023 Robert Gordon University study, “Powering up the Workforce”, included an estimate that the offshore renewables workforce—including those employed in offshore wind, carbon capture and storage, and hydrogen—could increase to between 70,000 and 138,000 in 2030.

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10:28 Pippa Heylings (Liberal Democrat)

Managing the transition from a North sea dominated by oil and gas to a North sea with a future for commercially viable renewable energy is critical to the UK’s reaching its climate targets by 2030. The North sea can have a new and bright future if we get things right, which will enable us to strengthen our energy security, reduce skyrocketing energy prices for our households and businesses, secure the UK’s global leadership in floating offshore wind and, importantly, rebuild our manufacturing and port capacity while delivering transitional skills, pathways and jobs for the highly skilled workers and for the thousands of people currently employed in the supply chains for oil and gas.

We Liberal Democrats are opposed to the new oilfields at Jackdaw and Rosebank, and we want the Government to commit to the winding-down of the oil and gas industry, as was agreed among all countries at COP28. The reality is that new drilling will not provide jobs or protect workers in a declining basin.

The future of the North sea can be bright: we boast some of Europe’s best sites for renewable energy. Our current installed capacity of 50 wind farms already accounts for about a quarter of global offshore wind capacity, and our offshore wind potential surpasses our projected energy demand, making it key to our energy security. However, the Liberal Democrats have always been clear that the only way to create long-term, secure jobs is to invest in supporting workers to transition into clean energy industries. The unjust transition of the oil refinery at Grangemouth is a clear illustration—a warning of what happens without early Government intervention and investment, showing that such decisions cannot be left to industry alone.

What jobs are we talking about? We are talking about new jobs within the new manufacturing supply chain and our own domestic green energy supply chain. The UK has consistently failed to seize the full economic benefits of our leadership in offshore wind. As we have heard today, the vast majority of Britain’s offshore wind capacity is owned by foreign companies, and the typical North sea turbine still contains three times more imported material than UK-made content. We need to make sure that our turbines are manufactured here and that our port capacity, in both manufacturing and fixed and floating offshore capacity, is enabled, or that will also be given to other countries. That could create an estimated 23,000 good green jobs, both directly and through supply chains.

Yes, we should join the Beyond Oil & Gas Alliance. We very much support that. Following COP28, we are looking forward to COP30. Hopefully, the UK can once again demonstrate global leadership, as part of an alliance of other countries that finally has a clear transition pathway.

We need to make sure that workers are prioritised as part of the new manufacturing industry and the supply chains. Research has shown that over 90% of the UK’s oil and gas workforce have transferable skills, but face a lack of support in transitioning to the clean pathway. As vice-chair of the all-party parliamentary group on climate change, I was pleased to meet an oil and gas worker from Aberdeen last month as part of a roundtable to discuss the challenges and opportunities facing workers. She described how Aberdeen has an abundance of STEM skills ready to drive forward the transition to clean energy, but workers are having to pay out of their own pockets to gain new qualifications, often duplicating qualifications that they already have.

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10:36 Andrew Bowie (Conservative)

I appreciate the hon. Gentleman’s point about the choice of language, but will he confirm whether he and his party still believe in net zero and the drive towards achieving our climate targets?

Yes, of course we believe in net zero, but not in setting arbitrary targets and dates that are unachievable without making this country poorer or more reliant on foreign imports for our energy supply. The fact is that imports of LNG have doubled just to keep the lights on as we actively accelerate the decline in our own North sea oil and gas industry. That is nonsensical—it is madness. It is an act of national self-harm. We should revert to our policy of maximum economic recovery from the North sea while doing all we can to ensure that the companies involved invest in new technologies.

We need a just transition. As ever, the hon. Member for Alloa and Grangemouth (Brian Leishman) spoke eloquently about his constituency. Workers in Grangemouth, who are looking with great trepidation at what the future holds, tell us that there is nothing just about the transition as it stands. It is incumbent on the Government to do what they can to ensure the safety and security of jobs, the continued profitability and investability of our oil and gas industry as it seeks to transition into the technologies of the future, and the economic success and sustainability of north-east Scotland and the Scottish economy as a whole.

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10:45 Michael Shanks (Labour)

I am conscious of the time, but I want to reflect on two brief points that the hon. Member for Aberdeen North made in her closing remarks. The first is about listening to communities, which is important, and I will continue to do that, as will my colleagues. The second is about the oversight and management of the plan, which is a question we are looking at. I am always slightly resistant to simply saying that setting up a taskforce or a commission is the answer, but the point that the Just Transition Commission made, and that the hon. Lady also made, is right: we need to grasp it at the heart of Government, and we are actively looking at that.

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