Clean Energy: North Sea

Wednesday 5th March 2025 Written Statements

[The Secretary of State for Energy Security and Net Zero (Ed Miliband)]

Today my Department is launching a consultation on our plan for the future of energy in the North sea.

For decades, the North sea’s workers, businesses and communities have helped power our country and our world. This consultation sets out how we will ensure they power our energy future—continuing oil and gas production for decades to come, while seizing the opportunities of the clean energy revolution.

We know that the North sea is a maturing basin and, as a result, jobs in the oil and gas industry have declined over recent years. For this transition to work, we have to manage our oil and gas assets sensibly while developing a plan for the future.

That is why we are consulting on how Government will work with the sector to manage existing fields for the entirety of their lifespan, as well as how to enact the Government’s commitment not to issue new licences to explore new fields.

This consultation is about a dialogue with industry, workers and communities on building the North sea’s future. The geography and geology of the UK continental shelf (UKCS) are a huge asset in technologies like carbon capture, hydrogen and offshore wind. Britain is well placed to mobilise this natural advantage, but to do so we must put in place policies that will allow us to seize the huge opportunities clean energy presents.

That means harnessing the North sea’s combination of offshore infrastructure, highly-skilled workforce, supply chains and vast natural assets, while ensuring workers have the tools they need to take up new opportunities.

That is what the Government’s mission to make Britain a clean energy superpower is all about. It is the only way to deliver energy security, good, long-term jobs, and a managed, orderly and prosperous transition for the current workforce and communities. At the same time, a science-aligned approach to future oil and gas production is the only way to deliver climate security for future generations.

The Government are determined to co-ordinate the scale-up of the industries which will shape the future of the North sea—including offshore wind, carbon capture and storage, hydrogen, and decommissioning—as the basin matures. This is vital for delivering the best outcomes for workers and communities, energy security, and sustainable economic growth.

That is why we have been moving at pace over the last eight months to put in place the foundations of the future. We have already announced that Great British Energy will be headquartered in Aberdeen, reflecting our commitment that the communities that powered our country’s energy past will continue to power its clean energy future.

In addition, we have overseen a record-breaking renewables auction; kickstarted Britain’s carbon capture and hydrogen industries; worked with industry and unions to move forward on a “skills passport” for offshore workers; and put clean energy at the heart of our modern industrial strategy. This consultation takes the next step.

As part of our commitment to provide certainty to industry, it is being published alongside HM Treasury and HM Revenue & Customs’ oil and gas price mechanism consultation, which sets out how the fiscal regime will respond to any future spikes in oil and gas prices once the energy profits levy (EPL) ends.

We will continue to work in partnership with all those involved in building the North sea’s future—businesses, trade unions, workers, environmental groups and communities—as we develop a plan to seize the opportunities of the years ahead.

[HCWS502]