News Oil & Gas

Don’t let oil and gas workers ‘wither on the vine’, ministers urged


The 40,000 jobs figure has been reached using “standard industry multipliers”, based on the up to £16bn investment envisaged as part of the transition deal.

That comprises £2-3bn to power oil and gas rigs with renewable or mains electricity; £2-3bn for carbon capture and storage systems; and £10bn to produce hydrogen.

The money is expected to come from both private and public investment, although Government has yet to finalise mechanisms to support commercial investment in many key areas, saying it expects to do so for hydrogen production in 2022. Moreover, the declining interest of cash-rich supermajors in the basin due to its dwindling reserves raises questions over whether enough private investment will be forthcoming.

A target has been set of 50pc UK content across new energy projects. Mr Fraser, from Unite, has meanwhile been pushing for more safeguards for oil and gas workers including wider use of collective bargaining agreements.

Adding to the pressure from the deal, Government also plans to make it harder for oil and gas companies to get new licences.

A government spokesperson said: “We will not leave oil and gas workers behind in the United Kingdom’s irreversible shift away from fossil fuels.”


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