It’s 2050. The UK stands as a global leader in energy innovation, having reached net-zero carbon emissions and built a resilient economy. Its offshore energy sector thrives, powered by homegrown talent and technologies, with secure supplies of energy underpinned by a diversified mix of renewable and low-carbon energy sources. The UK is a key exporter of energy solutions, from wind power to hydrogen, delivered by companies anchored in modern industrial heartlands. The nation has not only met its climate goals but has leveraged the energy transition to create new jobs, bolster economic growth, and secure its future.
While this vision might seem far off to some, achieving it is far from impossible. However, it will only happen if we adopt a pragmatic approach to policymaking and build on the UK’s existing strengths. This will be essential to our success. The next six months are pivotal. Decisions made today will shape the success or failure of our energy transition and ultimately the UK’s future industrial economy. The UK government’s oil and gas fiscal review, licensing consultation, the environmental impact assessment review and the Scottish government’s energy strategy will all play critical roles in setting the course.
The election of Donald Trump and the outcomes of recent European elections offer two important lessons for the UK which we should heed as we look to the future of energy. First, the global risk of pulling back from climate commitments presents an opportunity for the UK to step forward as a leader in successful energy transition. This opportunity will only be realised if, like Norway, we approach it in a truly pragmatic way which attracts investment to develop the world-leading technology needed. Second, these results demonstrate the need for governments to take and keep people with them on the journey. A successful homegrown energy transition must deliver tangible benefits to people and communities across the UK. New, innovative jobs can spur on economic growth, in turn benefitting communities.
The UK’s industrial history is written in the sweat and struggle of working people, from the miners in the coal pits to the engineers building power plants and North Sea workers producing the gas and oil that heats our homes and powers our industrial sectors. These are the communities that have powered our country and given us the energy to build the modern world. Their sacrifices, their labour and pride in their work shaped the very foundations of our economy.
But the world is changing, and so must we. We owe it to those who came before us – and to the next generation – to ensure that the UK remains at the forefront of energy innovation, that no community is left behind, and that every person in this industry has a stake in the UK’s energy future. Energy producers, and their supply chains, remain anxious. Uncertainty at home and abroad, whether regulatory or political, all deters investors who want certainty on returns. While we welcome GB Energy as a signal the UK government will back UK projects, there must be a pragmatic reality that much more is needed to create the certainty investors crave. Regulatory reform, clear and sensible fiscal frameworks and industrial strategy are tangible policy outcomes which will make a difference. Markets also move on sentiment. To unlock the full potential of this UK industry, we need a continued pragmatic dialogue from government that gives investors confidence that the switch won’t be flicked from one day to the next on support for the sector.
The energy transition must be delivered with respect for our heritage and with ambition for our future. It’s a future where energy jobs continue to offer new hope and new livelihoods to those who have seen too many industries come and go. No more stop and start. Instead, continuous progress. By harnessing local energy, from offshore wind to solar power, to the oil and gas we will need during this journey, and the supporting industries that will drive this, we can ensure that energy security and economic growth are powered wherever possible by Britain’s own resources.
Today, 75 per cent of our energy needs are met by oil and gas, and we meet around half of that from domestic production. While we continue to use oil and gas, it makes sense to prioritise our own resources, supporting value in our economy, UK jobs and our world-class supply chain. This kind of homegrown energy transition is not just an environmental or moral imperative but an economic necessity. The UK is uniquely positioned to leverage its natural resources and expertise.
Doing so will take people on the UK’s journey to step forward as a leader in the energy transition. Today, the UK imports more than 40 per cent of its energy needs, making us vulnerable to global supply shocks and price fluctuations. A strong domestic energy sector, with a diversified mix of renewable energy and low-carbon fossil fuels will reduce our reliance on external sources and protect against international market volatility. The UK’s offshore oil and gas sector alone currently supports over 200,000 jobs. By investing in homegrown energy solutions, we can add thousands more well-paid, sustainable jobs across renewables, manufacturing and clean tech. Research by Robert Gordon’s University suggests jobs supported by offshore energies could increase by 50 per cent by the end of the decade if we get the transition right.
The global energy market is increasingly unstable. Energy produced on UK shores –whether through offshore wind, solar power or natural gas – offers us greater control over our energy costs and supplies. Homegrown energy is also more resilient to disruptions like those seen during the Covid-19 pandemic and the energy crisis following the Russian invasion of Ukraine.
The UK is a pioneer in offshore wind technology and has the potential to become a global leader in hydrogen production, carbon capture and energy storage solutions. Supporting homegrown innovation not only drives the transition but will also strengthen the UK’s existing position as a major exporter of energy solutions to the world.
To lead the world in the transition to net zero energy requires us to get things right at home. A successful transition recognises the value of our oil and gas sector with pragmatic policy, unlocks investment in homegrown energy and technologies, and delivers a continuing pipeline of good energy jobs. The vision is shared; continued partnership, pragmatism and policy are needed for the UK’s offshore energy sector to support government in delivery.
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