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Debate on transitional support for North Sea oil and gas workers

Oil and gas workforce

The UK’s oil and gas workforce has declined over the last decade, alongside decreasing oil and gas production.

According to Offshore Energies UK, there were 121,000 direct and indirect in the UK’s oil and gas sector in 2023, a 51% fall compared to 2014. Indirect jobs are those in the oil and gas supply chain.

The Office for National Statistics (ONS), using a different definition of the sector, estimated that there were 61,225 direct jobs in the oil and gas sector, a 30% fall compared to 2015.

A large proportion of the oil and gas workforce is based in Scotland. 43% of oil and gas jobs in Great Britain are in Scotland according to ONS estimates. The ONS estimates that 1% of jobs in Scotland are in the oil and gas industry, rising to 13% in Aberdeen City.

There are concerns about the impact of the transition to net zero on North Sea oil and gas communities, particularly in Aberdeen, due to the high concentration of oil and gas workers there.

Government policy on the future of UK oil and gas

As part of its clean energy commitments in its election manifesto, Labour stated that it would “not issue new licences to explore new [oil and gas] fields”. It said it would not revoke existing licences and would work with businesses and workers to manage existing fields for “the entirety of their lifespan”.

The government launched a consultation on Building the North Sea’s Energy Future in March 2025; it will close on 30 April. The government has also opened a separate consultation on the future of the Energy Profits Levy (EPL) (the oil and gas ‘windfall’ tax) that will close on 28 May.

The government’s consultation on the North Sea’s Energy Future sets out the government’s “vision” for the North Sea to be an “internationally-leading offshore clean energy industry” that ensures “good, long-term jobs, growth and investment”. It seeks input on what support is needed for oil and gas workers to transition to clean energy sectors (such as offshore wind, hydrogen and carbon capture, utilisation and storage) and outlines initiatives already in place, such as regional skills pilots supported by the Office for Clean Energy Jobs, the Energy Skills Passport (see below) and establishing Great British Energy’s headquarters in Aberdeen.

The North Sea’s Energy Future consultation also sought input on the government’s delivery of its commitment to end the issuance of new licences for oil and gas exploration in the UK. The government emphasised that it “would not issue new licences to explore new fields”. The consultation does not address environmental impact assessment guidance for oil and gas fields, or the future of the Rosebank and Jackdaw projects, which were granted licences by the previous government that were later ruled unlawful by the Scottish Court of Session.

Energy Skills Passport

The Energy Skills Passport is an online tool that will enable workers to identify which qualifications, such as technical and safety standards, are needed for specific roles in different energy sectors, such as oil and gas and offshore wind. It also maps out career pathways within the energy sector. A pilot version of the website launched in January 2025. The full version is expected to be available later in the year.

The Energy Skills Passport is an industry-led initiative, jointly developed by trade bodies Offshore Industries UK and Renewables UK, and supported by the UK and Scottish Governments.

Office for Clean Energy Jobs and regional skills pilots

The government has set up a new Office for Clean Energy Jobs within DESNZ. It works on initiatives to develop a skilled workforce in core energy and net zero sectors, including “ensuring that clean energy jobs are good jobs”.

The Office for Clean Energy Jobs is leading on pilot regional skills schemes to help workers transition from carbon-intensive sectors to clean energy sectors. Four areas have been selected for the pilots: Aberdeen, Cheshire West and Chester, North and North East Lincolnshire and Pembrokeshire. All four areas will be considered for funding for measures such as new training centres and courses to upskill workers.