By Mark Williamson
UP to 26,000 jobs could be created across the UK in sectors such as carbon transport and storage, hydrogen production, and offshore electrification if governments deliver a “stable and predictable environment”, industry leaders have said.
The claims are made in the Workforce Insight 2022 report produced by industry body Offshore Energies UK (OEUK), which developed out of Oil & Gas UK.
The report highlights the potential for the development of low carbon energy sources and related emissions reduction technologies to provide a big boost to the job market in the UK.
It also notes the risk that the transition to net zero could be delayed if firms are deterred from making the hefty investment in projects and in the development of their workforces that will be required.
“Given Scotland’s legacy as a world class energy producer, it’s hugely important that the local talent pipeline is nurtured, so that younger generations and existing workers can deliver the wind, hydrogen and carbon capture, and oil and gas that we will need over the coming years,” said Alix Thom, OEUK’s workforce engagement and skills manager.
“To achieve this, we need governments to deliver a stable and predictable environment to do business.”
OEUK suggested the Government’s decision to increase the rate of the windfall tax levied on oil and gas firms’ profits last month had compounded the challenges posed for firms by the volatility seen recently in commodity prices.
The report notes the potential to use the capabilities offered by the oil and gas industry to support the energy transition. It highlights the risk that skills shortages could develop as energy sector activity increases and older workers leave the industry.
OEUK forecasts that the offshore oil and gas sector will support 90,000 jobs in Scotland in 2022. It said the number of jobs supported fell to a low of 67,400 in 2020 during the Covid-19 pandemic.
The industry is forecast to support 213,600 jobs in the UK this year, against 178,500 in 2020.
The industry supported 200,800 UK jobs last year. OEUK said: “The total supported employment was almost a quarter lower than before the pandemic owing to cutbacks in industry spending.”
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