Offshore Energies UK (OEUK) has released a new report showing that, with good policy, the UK offshore energy industry could see a 50% rise in job opportunities by 2030.
The report claims that with supportive policy and investment, the offshore wind, hydrogen and carbon capture sectors could increase by over 50% from about £13 billion last year to over £20 billion in the early 2030s.
However, OEUK notes that the transition to net zero will require over £1 trillion of investment, adding that the offshore energy sector is ready to spend £450 billion on projects in the next 15 years.
The report also notes the high level of transferrable skills between those working in offshore oil and gas operations and those needed for offshore wind, hydrogen and carbon capture projects, noting a 90% skills compatibility. The report advocates for “clear skills development and transfer pathways” to enable the current oil and gas workforce to access new careers in the offshore clean energy sector.
David Whitehouse, OEUK chief executive officer said: “Our report shows that the offshore industry could invest £450bn in UK energy by 2040. The path to success is a homegrown energy transition that puts people at the heart of it, builds on our industrial strengths and drives collaboration across sectors.
“With supportive policy, the industry can deliver enduring economic value, scale up our supply chain capacity, sustain skilled jobs, deliver energy security, all while delivering on our climate goals
“We are committed to ensuring the incoming government recognises the importance of our industry’s role in the economic future of the UK and the contribution of more than 200,000 people whose livelihoods depend on the sector.”
Controversially, the report does not advocate for reduced spending on offshore oil and gas, instead choosing to highlight how the sector supports around 1% of the UK economy, worth £25 billion, and that oil and gas production has contributed £450 billion in production taxes over the past 50 years.
In response to this, Jess Ralston, head of energy at the Energy & Climate Intelligence Unit (ECIU), emphasised the importance of reskilling workers to shift away from oil and gas and the need to move towards renewables.
She said: “Irrespective of any new licences, the oil and gas regulator is clear that the North Sea output will continue to decline. It’s running out. That means a plan is needed to re-skill workers, recognising they have valuable skills to offer. The good news is academics reckon 90% of workers can transfer to the offshore renewables industry.
“This is also good news for UK energy security as it’s clear that renewables will do the heavy lifting on providing affordable, British energy, the price of which isn’t dictated by international gas markets.”