North Sea Oil and Gas Workers: Transitional Support

Jamie Stone Excerpts

Wednesday 23rd April 2025 Westminster Hall

[Kirsty Blackman]

I had concerns about the windfall tax in the first place. I thought that a windfall tax should be applied, but that it should have applied across the board to all those companies that made significant profits during covid, whether that was supermarkets, Amazon or oil and gas companies. Singling out the oil and gas industry was the wrong thing to do at the time. In terms of the comparative level of the tax, I do not know the answer, and I do not want to say something that is not right, but I felt that it was wrongly applied. A number of other companies made significant profits, and the oil and gas industry felt singled out, as though it was somehow different. I accept that it is different from other industries in a number of ways, but the levels of profit were not as high as they were in 2014, for example, and singling that industry out when supermarkets were making a much higher percentage profit than they had in previous years did not seem like the right thing to do.

I appreciate the Government’s work on a skills passport for the industry. That is important, but there is no point having a skills passport if the jobs are not there. We have not seen the offshore wind industry increase at the pace we would like it to, and we cannot do all the work necessary to reduce the amount of oil and gas without those jobs for people to move to. In response to ET40, the 40th energy transition survey by the Aberdeen and Grampian chamber of commerce, one company said that

“Forcing the end of oil and gas for our company before offshore wind is ready to replace the lost revenues”

is one of its biggest concerns. That is how a significant number of companies feel right now.

Companies are struggling to find people with the skills they need, whether in oil and gas or offshore renewables. The people who will be building offshore renewables will be working three-on, three-off shifts, in the same way that oil and gas workers do. It is really difficult to adjust to life on three-on, three-off shifts—it is not easy for workers to change their lives and ensure that someone is home looking after their kids if they have a family. Oil and gas workers have that transferability, because their lifestyle is already set up to do that.

We are at a tipping point. The risk is that these highly mobile, highly paid oil and gas workers will go abroad. The responses to the ET40 survey show that a significant percentage of these people are moving to postings abroad either within company or in other companies. Despite the massive disparities in disposable income, an unbelievable number of people who live in Aberdeen North have been on holiday to Dubai. The majority of Members in this room will not have many constituents who have spent holidays in Dubai, whereas I have heaps, because they have that level of transferability and portability—they can up sticks and move to another country, because drilling is the same there. They might be doing it at a higher carbon cost and with fewer terms and conditions, but they are still getting a highly-paid job. They can uproot to do that, because they are used to moving around the world.

If we do not take control of the situation now, we will lose the skills we need to power the renewable future, which is incredibly concerning. One of the UK Government’s founding missions is to grow the economy. We will not be able to grow the economy if we do not take advantage of this situation, and the time is now.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The hon. Member is making a very good speech, and I congratulate her on it. She talked about fabrication skills. We have those skills in my constituency, but they are ageing. There will come a time when these people retire, and then those skills could be lost.

[Kirsty Blackman]

We have a huge amount of work to do, particularly with young people. When I talked to Developing the Young Workforce North East recently, I was heartened to hear that a significant number of young people in north-east Scotland still want to go into engineering, which is incredibly important, whether that is in fabrication or not, because engineering is involved in all of it. I am worried that we will lose that, because the industry is ageing, and the same thing is happening in offshore oil and gas. People see that their uncle, cousin or grandad was made redundant in oil and gas, and they worry about going into engineering.

If young people are not excited and passionate about the future of renewables, we will not be able to build the amazing tech that we need to ensure that renewables deliver a profit and work commercially, so I am concerned about skills. One of the key things that the Government could do is ensure more UK content and fabrication. We have amazing fabrication works—not so much in Aberdeen, but around the north-east and the rest of Scotland and the UK. That is a point that I wanted to make: this is a significant problem not just for Aberdeen but for the rest of the UK, given that only 25% of the jobs in offshore oil and gas are in the north-east of Scotland.

--- Later in debate ---

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

What a pleasure it is to see a fellow St Andrean in your august position, Sir Desmond. I am sure that the hon. Member for Brent West (Barry Gardiner) agrees.

I congratulate the hon. Member for Aberdeen North (Kirsty Blackman) on her comprehensive speech. It is greatly encouraging that one of our colleagues understands the situation as thoroughly as she clearly does—well done her.

I want to look at the historical perspective. I am of such great age that I can remember the time before North sea oil. Far too many in my class at Tain academy went south when they left school. They disappeared: they were part of the highland clearances, if you like, in latter years. My father said to me, “When you leave school, you’ll find your best employment chances down south, not up here in the highlands.” Then North sea oil came and everything changed massively. The Nigg oil fabrication yard was constructed near my hometown of Tain. There was one at Kishorn in Wester Ross, there was one at Ardersier near Inverness, and there were many other sites in Scotland and England. It meant that local people could find high-quality employment; they had not had that opportunity before. There were highly paid and skilled jobs. People learned skills such as rigging and welding, as the hon. Member for Aberdeen North referred to.

I worked at the yard at Nigg. At the height of it all, no less than 5,000 people worked there, constructing the mighty Conoco Hutton production platform. Those were the great old days. Since then, as others have alluded to, the situation has changed. Today, like the hon. Member for Aberdeen North, I have many constituents who work offshore. However, the same opportunity or perhaps necessity is there for those who are considering moving abroad. It is the same story. Very often they move south because it is easier to get to wherever they want to work, which could be in Kuwait or wherever. We face that old dread demon of highland depopulation—people leaving again. We have an ageing population, and we do not have as many younger carers as we would like. Families are beginning to go, and that is part of the tragedy.

The reason I came down on the Saturday when Parliament was recalled is that British steel means everything in constructing oil platforms, and possibly floating offshore wind structures. Safeguarding the industry is hugely important to me, which is why I made the journey there and back to vote in support. However, as the hon. Member for Brent West pointed out, far too many wind turbines are made of steel that is not made in this country. Far too many parts of those turbines are not made in this country either.

Our great, shining hope is that one day we will be using the skills to which I referred to train young people to start building turbines, cells and blades here in the UK. We are not doing nearly enough as we should, yet at Nigg we have one the finest graving docks in Europe. It is a perfect site. Kishorn has been revived, yet we are still not making the bits and pieces that we should. Yes, we are putting them together and putting them into the North sea—the Beatrice field off my constituency is an example—but there is much more to do.

In the minute and a half that I have left, let me echo the hon. Member for Aberdeen North in saying that the world has changed since Putin and Trump. Oil is a strategic asset. We are lucky enough to have it. We should not talk it down all the time. We should look on the new discoveries as cash in the bank for the future. Oil is not just about burning hydrocarbons, but about pharmaceuticals and many other uses. We should always remember how fortunate we are that the good Lord gave us this strategic asset.

I will conclude where I began. So many of my class went away. In more recent decades it has been different: people have stayed. Every single job in oil and gas is crucial to remote highland communities. It is the people coming back from working three on, three off, or whatever, who keep the lights on in the straths and glens of some of the remotest parts of the highlands.