North Sea Oil and Gas Workers: Transitional Support

Stephen Gethins Excerpts

Wednesday 23rd April 2025 Westminster Hall

[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.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

My hon. Friend is making an excellent speech, as always. On fabrication, does she see the connection between the universities, colleges and education sector and the transition? There has been some excellent work on fabrication in Arbroath and Broughty Ferry and Dundee, but of course more can always be done.

[Kirsty Blackman]

I absolutely agree, and my hon. Friend would expect me to talk about the University of Aberdeen and Robert Gordon University in my constituency. Along with North East Scotland college, they have been doing really important work as part of the Aberdeen city deal and the energy transition zone to ensure that we have skills for the future. Aberdeen council has created a significant number of jobs and things like foundation apprenticeships to encourage young people into the sector, but we need people to think about tech as well as make it. We have the right ingredients, but we need to ensure that everybody has confidence in the commitments that are being made. That is where the gap is. I have spoken to the Minister about that, and I have no doubt that he is strongly committed to that, but my concern is that the industry does not believe that the Government are strongly committed to a just and managed transition.

About 12% to 17% of people in Aberdeen city are directly employed in oil and gas, and a significant number are indirectly employed, but there has been a massive reduction in jobs since 2014. We have recently seen an increase in offshore wind revenue, but there are 4,000 fewer jobs so something is going wrong. My key ask is that the Government listen to people and have a plan.

The world looks very different now from how it looked in July 2024. When the Government were elected, Donald Trump was not in the White House and we did not have the global uncertainty caused by that. Something like 20% of the liquefied natural gas that we import comes from the US, and we are involved in global trading markets for oil and gas, so the increase in global volatility means that we need to think more seriously about energy security. We have had to do that since Russia invaded Ukraine and since covid, but the situation is even more desperate now. To ensure energy security, we must take control of everything we can, and we must not rely as significantly on imports as we will if the Government maintain their current direction of travel, particularly given that we do not have gas storage and are basically using LNG ships as offshore floating storage.

My key ask is for the Government to listen to people. The Minister does go out and listen to people, but they are saying that the Government are not getting it right. They are perfectly happy with some of the rhetoric, but they are concerned that action will not follow. They do not yet trust the Government’s commitment to a just and managed transition. Whatever the Government’s views—whether they are committed to a just and managed transition or not—they need to ensure that people believe they are.

That is the gap, and my suggestion for dealing with it is in line with the North Sea Transition Taskforce’s “Securing the Future of the Energy Transition in the North Sea” and Offshore Energies UK’s most recent report: we must ensure that there is a kind of mission control, so that there is somebody in charge of this. I appreciate that the Minister, the Secretary of State for Scotland and the Under-Secretary of State for Scotland are talking about that and are willing to answer my questions, but nobody seems to be in control. There is no oversight at a governmental level; there is no one person in the Government about whom everybody can say, “That person is in charge of the just and managed transition.” There is no group that has been set up.

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.

The timing is key. The Government may not be able to announce their final decisions—around the fiscal regime, for example—but if they could give industry a direction of travel in advance of investment decisions and financial plans being made, we would not lose next year. I am really worried that we are at the point where we will lose next year and all the associated jobs as a result.

The Government are not yet getting this right. They need to do more listening and to ensure that they are taking control. The facts and the context have changed in the past year, because of the global changes and the job losses we continue to see. I am not asking the Government to row back on what they planned; I am asking them to consider that the context and the facts have changed and, therefore, that the plan needs to change to recognise that.

This is not about having to walk back from where we believe we should be. This is about ensuring that people in my constituency, and people across the country, who are employed in oil and gas—75% of workers are employed in the rest of the UK—have a secure future. We cannot see a gap as oil and gas jobs go down and renewables jobs go up, because we will lose all that talent and the incredible bonanza that we are at the best point to take advantage of. We might lose that just because people do not believe that the Government are committed enough. Now is the time to take these decisions and to ensure that people believe that the Government are committed to a just and managed transition.