ONE of the Labour Party’s biggest union backers has hit out at the party and warned that ministers have left the oil and gas sector “facing a cliff-edge for investment, production and jobs”.
In a rare joint statement, representatives of offshore firms and the GMB trade union have warned that plans to end North Sea drilling will inflict catastrophic job losses on communities throughout the UK.
They are urging the government to introduce a “fair fiscal regime for the sector which incentivises investment and jobs; with domestic production from new and existing fields that will help deliver the oil and gas we still need”.
In a joint article for The Times, Robin Allan, the chairman of the Association of British Independent Exploration Companies; David Whitehouse, the CEO of Offshore Energies UK; and Gary Smith, the general secretary of the GMB, argue that the UK will continue to require oil and gas for years to come, despite the Labour Party’s commitment to shift towards “clean energy by 2030.”
They highlight the risk of job losses on a scale similar to closing the Grangemouth oil refinery every week due to the current stance on North Sea exploration.
They also point out that there are significant uncertainties regarding whether domestic oil and gas production will be sufficient or if the UK will have to rely more on imports in a world that is becoming increasingly unstable.
They write: “These are questions government haven’t yet answered clearly or credibly. [Workers] deserve a fuller response because industry and independent reports suggest that fiscal plans for the offshore sector could see tens of thousands of job losses by 2030.
“Imagine the employment equivalent of a Grangemouth refinery closing nearly every week from 2025 to 2030. No one should leave that unchallenged.”
A spokesman from the Department for Energy Security and Net Zero said: “The government has a non-negotiable commitment to securing a proud future for the North Sea and we are engaging with industry, workers, trade unions and civil society to provide certainty through a phased and responsible transition.
“Our National Wealth Fund and Great British Energy will work in lockstep with industry to unleash private investment – helping create thousands of jobs in clean energy to boost our energy independence.”
