© Supplied by OEUK This week’s Scottish Affairs Committee session was a welcome opportunity to hear more about the UK Government’s plans for GB Energy and the wider energy transition.
But the suggestion it aired that there is not a material difference between imported oil and gas and what we produce here in the UK does need to be addressed.
Because there is a difference. And it matters.
It matters to people and the places where we live – producing our own oil and gas supports over 200,000 jobs in communities across the country, providing £25 billion of value in our economy each year, supporting the very companies needed to deliver our energy future.
That is the homegrown dividend in action.
Today 75% of the UK’s energy needs are met by oil and gas. Domestic production met 60% of the UK’s oil demand and 50% of its gas demand last year. That is not a marginal contribution — it’s a critical part of our energy mix.
The UK is importing historic amounts of energy with over 40% of our energy needs met by imports. In a volatile world let’s be clear — where we get our energy from matters.
And it’s not just about energy security — it is also about emissions. The North Sea Transition Authority (NSTA) has shown that imported LNG can have up to four times the emissions of UK-produced gas.
The sector has paid over £400 billion of tax in the last 50 years. That’s a material difference — environmentally, economically, and strategically.
We all recognise that our energy mix must change, but that transition is not happening overnight. And it’s not happening in isolation. It’s happening in communities like Aberdeen, where people are already working across oil and gas, offshore wind, carbon capture, and hydrogen — often in the same companies, and sometimes in the same roles.
For too long we have watched the demise of industries across the UK. Over the past 50 years we have lost 60% of our industrial workforce.
This is not about oil and gas versus renewables — we need both. At a global level we continue to consume more energy and renewable sources are required alongside oil and gas.
The real choice is whether we want the oil, gas, wind, hydrogen we will use produced in the UK or if we become increasingly reliant on imports.
We also need to be clear about the role of policy. The Minister said the decline in the basin is geological, not political. But policy shapes investment. It shapes confidence. And it shapes whether people see a future for themselves in this industry.
When companies cite fiscal instability as a reason for job losses, as Harbour Energy did earlier this year, we need to listen.
GB Energy can be an important platform for delivery — which means working with the people and businesses already here, already building the future.
Our Chancellor recently said, “where things are made, and who makes them, matters.” I agree and that applies to our energy too.
David Whitehouse is chief executive of Offshore Energies UK
