The PM has been warned that Labour energy policies would devastate Scotland’s energy sector (Image: Getty)
has been warned by panicking offshore oil and gas firms that he risks inflicting huge job losses – especially in Scotland – if follows through with plans for the sector.
In a joint letter published by the GMB trade union and companies cautioned the Government that redunancies on the scale of Grangemouth, which is shutting next June at the cost of hundreds of jobs, could occur nearly every week for five years.
According to the industry figures, the sector is “facing a cliff-edge” where investment, production and jobs are concerned.
They called on to do two things to ensure the sector’s future – drop pledges to block the approval of new licences and hike the windfall tax.
Energy Secretary Ed Miliband has pledged to ban the award of new licences for exploration for oil and opted not to contest court cases against the latest two fields, in Rosebank and Jackdaw, that received permission under the previous Tory government.
:
Starmer delivering his first speech to the Labour party conference as PM last week. (Image: Getty)
Offshore Energies UK boss David Whitehouse, GMB general secretary Gary Smith and the head of the Association of British Independent Exploration Companies Robin Allan warned in their statement that plans to end North Sea drilling could have a catastrophic impact on jobs.
They argued that questions remain about about whether oil and gas would be produced in the UK or imported from abroad “in an increasingly volatile world”.
“These are questions government haven’t yet answered clearly or credibly,” they wrote. “[Workers] deserve a fuller response because industry and independent reports suggest that fiscal plans for the offshore sector could see tens of thousands of job losses by 2030.
“Imagine the employment equivalent of a Grangemouth refinery closing nearly every week from 2025 to 2030. No one should leave that unchallenged.”
Bosses at Petroineos confirmed earlier this month they would be closing the Grangemouth oil refinery in the second quarter of next year, with 400 jobs expected to be lost. After Grangemouth’s there would no longer be any sites in Scotland able to refine oil.
[REPORT]
Energy Secretary Ed Miliband has pledged to ban the award of new licences for exploration for oil (Image: Getty)
has been firm in its commitment to green policies, and has already outlined more anti-oil and gas moves. These include upping the windfall tax on oil and gas profits to 78 percent, extending it until at least 2029 as well as scrapping investment allowances.
North Sea firms and industry leaders fear these policies will “hasten the demise” of the country’s oil and gas sector.
Scottish Tory Shadow Cabinet Secretary for Net Zero, Energy and Transport Douglas Lumsden urged to heed the warnings, saying they must “urgently listen to these calls from those representing the oil and gas sector.
“Offshore bosses and unions are right that have abandoned the industry and are prepared to throw tens of thousands of workers under a bus. That would be devastating for the North East and Scotland’s economy.
“It is simply common sense to recognise oil and gas will have a crucial role to play in our transition towards net zero but short-sighted and ministers are refusing to recognise that,” he argued, adding: “Only the Scottish are standing up for the sector and highlighting how vital it is for future economic growth aspirations.”
A spokesman from the UK Department for Energy Security and Net Zero said: “The government has a non-negotiable commitment to securing a proud future for the North Sea and we are engaging with industry, workers, trade unions and civil society to provide certainty through a phased and responsible transition.”