Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

‘Today, it jars’: Over 40% of Aberdeen oil firms have not signed up to net zero targets, finds survey

© Supplied by AJL/ Colin RennieSGN Aberdeen hydrogen
Aberdeen harbour.

A significant percentage of oil and gas firms in the Aberdeen area are yet to sign up to net zero targets, according to a new survey from the chamber of commerce and accountancy firm KPMG.

The 34th oil and gas survey showed 41% have not developed a specific net zero or carbon reduction strategy, while a further 27% have done so “but have not set a deadline” for reductions.

Martin Findlay, senior office partner at KPMG Aberdeen, said: “Two years ago, that figure might not have come as a surprise, but today it jars.

“Without clear plans to transition to an integrated energy sector which involves oil and gas and renewables, with viable solutions on transportation and heating, many firms are now facing a clear fork in the road – evolve and thrive or be left behind.”

It comes as 80% of firms indicated that strong sustainability credentials were critical to their long-term future.

Meanwhile, the survey found that less than one in four firms in the sector have been influenced by events around COP26 in Glasgow, which the surveyors said suggested that net zero acceleration is “already a work in progress”.

Aberdeen net zero oil © Supplied by Handout: Big Partner
Martin Findlay, senior office partner, KPMG Aberdeen.

The survey, the longest-running of its kind, was carried out between September and October this year, representing the views of 101 firms across industry in Aberdeen and Aberdeenshire.

KPMG is one of the “Big Four” global accountancy firms, while Aberdeen and Grampian Chamber of Commerce has more than 1,000 member firms across north-east Scotland.

Diversification drive

The net zero targets warning comes amid a growing push for diversification in the sector, and the study showed progress on that front.

By 2030, the majority of respondents expect almost half of their activities to come from outside oil and gas, rising from 21% today to 47%.

The study describes the energy transition as “perhaps a bigger and longer term economic opportunity for the Aberdeen city region than when oil was discovered in the North Sea in the 60s”.

That’s reflected in 76% of firms being roundly positive about Scotland’s future potential as an energy heavyweight, and Aberdeen being the energy hub at the heart of that vision.

Meanwhile 69% expect revenues to rise in 2022, and 52% of firms plan to increase their core headcount over the next three years.

However workforce challenges remain a key barrier, with concerns that skills shortages could be a barrier to meeting net zero ambitions, the AGCC/ KPMG study found.

Aberdeen net zero oil © Supplied by AJL/Chris Sumner
AGCC chief executive Russell Borthwick

Major diversification concerns included: identifying skills gaps (64%), attracting employees (50%) and retraining costs (36%), with identified solutions including retaining existing staff, recruitment of graduates, use of contractors and rebranding.

Russell Borthwick, chief executive at AGCC, said: “The results illustrate that firms in the sector envisage the transition picking up pace rapidly over the next decade.

“The industry is clearly committed to taking a leading role in delivering the UK’s net-zero ambitions, with the majority of businesses committed to achieving net-zero. 30% of firms have set a clear target for doing so, which compares favourably with data on the wider Scottish economy.”

The survey also found that just 24% of companies believe that government support for the transition is currently visible or accessible to their business, posing another barrier to diversification.

Mr Borthwick added: “Only a quarter of companies stated that government assistance to support them in making the transition was visible or accessible to their business.

“This underlines the importance of providing firms across the supply chain with the vital support they need to diversify into new activities and deliver a just transition.”

Recommended for you

More from Energy Voice

Latest Posts