The decline in oil and gas activities in the North Sea of the UK has led to the risk of losing 115,000 jobs in this industry. This conclusion is stated in a new report published by the North Sea Transition Taskforce.
Negative Impacts on the Labor Market
According to this report, the oil and gas industry currently creates jobs for approximately 115,000 people directly and indirectly. Since the recent general elections in the UK, it is estimated that around 25,000 jobs have been lost in this sector. This crisis is particularly significant in northeast Scotland, where a quarter of its workforce is dependent on the marine energy industry.
Read more: Habibollah Siyari emphasized the readiness of the youth of the army in the battlefield
Economic and Social Challenges
Philip Rycroft, head of the Taskforce, stated that "the fundamental problem is that the traditional energy economy is declining faster than new industries are being created." He warned that if this gap widens, skilled labor, businesses, and infrastructure will be lost, and rebuilding them will be difficult.
The Taskforce has urged the UK government to abolish the Energy Profits Levy (EPL) and to implement the proposed oil and gas revenue tax from 2027-28 instead of 2030. The UK government has announced that the EPL will end in 2030 unless its pricing mechanism is activated sooner.
Investment and the Future of Energy
Industry analyses estimate that implementing the new financial regime sooner could unlock up to £50 billion in additional private investment and generate over £13 billion in tax revenue over the next decade. The report also emphasizes that oil and gas production in the North Sea should be managed in a way that existing workers and infrastructure are transitioned to new energy industries.
Russell Borthwick, CEO of the Aberdeen and Grampian Chamber of Commerce, noted that "for northeast Scotland, this is not an abstract discussion about the future of our energy system in 20 years. Jobs and investment are currently being lost."
The Taskforce has also called on the Scottish government to finalize its energy strategy and just transition plan and to coordinate economic and skills strategies for the region.
Read more: Energy consumption management at Pars Oil and Gas Company · The CEO of Tabriz Refinery should be accountable for the safety status of the process and risk management
