UK oil and gas sector faces severe job cuts if no action is taken

The UK oil and gas sector is facing significant challenges ahead, as a report from Aberdeen's Robert Gordon University warns of potential job losses. The research indicates that, under low-case scenarios, the workforce could reduce from the current 115,000 to between 57,000 and 71,000 by the early 2030s. This drastic reduction is likened to the closure of the Grangemouth oil refinery occurring every fortnight. The report highlights that without new licenses being granted, the industry is projected to decline by approximately 95% by 2050 from 2024 levels, urging the need for government intervention to stabilize and protect job opportunities in the sector. Currently, more than one in 30 workers in Scotland is employed in the oil and gas sector, which forms a crucial part of the economy. As of 2024, employment figures show 154,000 people are working within the offshore energy sector, with a notable percentage involved directly in oil and gas operations. The decline of oil production, down nearly 75% from its peak in 1999-2000, adds to the urgency of the situation. The report calls for a unified strategy that not only secures current jobs but also transitions skilled workers towards developing renewable energy industries for a sustainable future. Political leaders from various parties have responded strongly to the report’s findings. SNP Westminster leader Stephen Flynn stressed the necessity for the UK Government to take immediate action to mitigate job losses. He pointed out that maintaining the existing energy industry is vital for carrying workers' skills into new industries centered around net zero technologies. Conversely, Scottish Conservative spokesman Douglas Lumsden criticized both Labour and the SNP for contributing to the economic decline of the oil and gas sector, suggesting a lack of comprehensive energy strategies that can integrate both traditional and renewable energy sources. The Scottish Government has expressed its commitment to supporting the oil and gas sector while facilitating a just transition aligned with climate change objectives. Acting Scottish climate action minister Alasdair Allan mentioned plans to collaborate with the energy sector, focusing on providing a multi-skilled workforce that can adapt to various roles as the energy landscape evolves. He emphasized the importance of having favorable decisions from the UK Government to further support this transition, particularly mentioning funding for projects like the Acorn carbon capture and storage initiative in Aberdeenshire, which could create numerous job opportunities.