OEUK news

Energy revolution must go hand in hand with skills and supply chain evolution

6 October 2020

The leading representative body for the UK’s offshore oil and gas industry has welcomed Prime Minister Boris Johnson’s wind power plan today as a positive shot to the arm for its struggling supply chain.

The plan will include £160 million of funding made available to upgrade ports and infrastructure in critical energy communities including Teesside and Humber, Scotland and Wales.

Speaking in response to the proposals, OGUK said developing skills and supply chain capabilities will be critical if the UK is to reach its climate ambitions. In early 2020, around 75 percent of OGUK member companies reported at least some of their revenue is generated from non-oil and gas related work, with 30 per cent noting that more than 25 per cent is comes from diversified activity.  

Electricity demand currently accounts for 17 percent of total energy demand, meaning the decarbonisation of transport, industrial needs and heating remains critical if the UK is to meet its climate change targets. OGUK today reinforced the importance of the North Sea Transition Deal to deliver the low carbon solutions needed to drive a true green industrial revolution.

OGUK Chief Executive Deirdre Michie said:

“Today’s announcement is a great shot in the arm for our supply chain, which we know is already on the road in its diversification journey but needs substantive support.

“If we are to have the best chance at success, the green energy revolution must go hand in hand with a skills and supply chain evolution.  With the essential expertise to power the green recovery and help the UK meet its climate ambitions, the UK’s changing offshore oil and gas industry is committed to making a positive contribution.

“Through a North Sea Transition Deal we can help do some of the heavy lifting for the huge parts of our economy which won’t be able to meet climate targets through electricity alone. It’s why today we encourage the Prime Minister to maintain this momentum and unlock wider low carbon opportunities including carbon capture usage and storage, and hydrogen.

“With a fair and managed transition, this sector can continue to provide affordable energy to millions of households and families, support jobs in energy communities across the UK and create exciting new jobs of the future.”

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