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27 May, 2025
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North Sea 'wake-up call' as survey reveals staff leaving to work abroad at 'alarming' rate
@Source: scotsman.com
Ministers have been warned the energy transition is failing after a survey found almost half of firms active in the North Sea say staff are leaving the UK to work abroad. Aberdeen and Grampian Chamber of Commerce (AGCC) said its 41st energy transition survey, published in association with Johnston Carmichael and clean energy group D2Zero, showed an alarming exodus of activity and talent. The survey of more than 100 firms found two-thirds expect to increase headcount overseas in the next five years. Firms anticipate the majority of their work will be overseas by 2030. A total of 46 per cent said they were losing more UK-based staff than usual to other international regions, while 58 per cent reported staff leaving to work in other industries or sectors. Just 5 per cent reported more staff than usual moving into renewables. Russell Borthwick, chief executive of AGCC, said it was “a wake-up call for policymakers”. He said: “We are training a world-class workforce and building the technology to lead the energy transition - but that talent and investment is increasingly being deployed overseas. “You cannot deliver net zero by exporting your industrial base. If we continue to erode competitiveness through incoherent energy policy and excessive taxation, we risk offshoring the entire supply chain that is essential to the UK’s future energy system.” The energy transition survey tracks industry confidence and activity trends across oil, gas and low-carbon energy. AGCC said this year’s findings highlighted a deepening crisis in domestic confidence. The chamber found 66 per cent of firms expect to increase their overseas workforce by 2030. Nine in ten believe the absence of a Scottish Government energy strategy is damaging investor confidence, while 89 per cent said ending the UK government’s windfall tax would boost investment and jobs. Almost half believe green energy roles will never fully replace lost oil and gas jobs. Join the thousands of Scots who receive our newsletter every day For the first time in the report’s 20-year history, AGCC said, market fundamentals like commodity price and demand have been displaced by UK policy as the top long-term concern for the sector. UK tax and licensing rules are now the first and third most pressing issues cited by respondents. AGCC said it believed ending the windfall tax in 2025 and issuing targeted new licences could unlock billions in economic activity and protect thousands of jobs. Mark Stewart, head of energy, infrastructure and sustainability at Johnston Carmichael, said: “This survey reinforces what we are hearing daily from the companies we advise - that uncertainty and inconsistency in UK energy policy are now bigger threats to investment than commodity prices or global market trends. “The energy transition isn’t failing because of a lack of ambition - it’s failing because of a lack of execution. Businesses are ready to invest, innovate and diversify, but they need stable, predictable conditions to do so. Right now, the economics simply don’t stack up for many green projects. “We are seeing a growing trend of skills, capital and capability moving overseas - particularly in areas like offshore wind, carbon capture and decarbonisation technologies. That’s deeply worrying, because it’s the same supply chain we’ll need to deliver a net-zero system here in the UK. “There’s still time to reverse that trend, but it will require faster project approvals, a stable tax regime, and co-ordinated policy leadership. If we can bridge the gap between today’s oil and gas activity and tomorrow’s clean energy projects, we can create a sustainable path forward for both our economy and the environment.” Bob Drummond, chief executive of clean energy group D2Zero, said: “The UK has the talent, the technology and the track record to lead the global energy transition - but we are now at serious risk of falling behind due to fragmented thinking and short-term policymaking. “This report lays bare a critical truth: if we don’t act decisively, the infrastructure and ingenuity we need to build a low-carbon future will be deployed elsewhere. And once that capability is gone, it will be extremely difficult to rebuild. “Energy transition isn’t a switch we flip overnight. It’s a series of complex, interconnected projects that require sustained momentum. A co-ordinated national delivery plan to bridge the gap between where we are and where we need to be will ensure progress is practical, investment is aligned, and no region or sector is left behind. “From offshore electrification and carbon capture to advanced decommissioning and hydrogen, the UK has real advantages. We need to create the right environment to keep projects moving and capital flowing, to ensure high-value jobs and strategic independence.” A UK government spokesperson said: “The Government recognises that oil and gas production in the North Sea will be with us for decades to come and is committed to managing the energy transition in a way that supports jobs in both existing and future industries. “We have taken rapid steps to deliver the next generation of good jobs for North Sea workers in a fair and orderly transition as part of our Plan for Change — including the biggest investment in offshore wind and two first-of-a-kind carbon capture and storage clusters. “This comes alongside Great British Energy, which has already announced a £300 million investment in British supply chains — unlocking significant investment and helping to create thousands of skilled jobs, as we progress our mission to make the UK a clean energy superpower.”
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