Cross-Industry Group Issues Letter to Incoming UK Gov
A “powerful” cross-industry group is delivering a “strongly worded letter” to the incoming UK government, warning that policy makers “must back homegrown oil and gas ahead of imports, alongside greater support for UK manufacturing and industry”, a statement sent to Rigzone by industry body Offshore Energies UK (OEUK) recently noted.
The open letter to the parliamentary Labour Party, which was seen by Rigzone, was signed by OEUK, the Chemical Industries Association (CIA), Fuels Industry UK (FI), the UK Chamber of Shipping (CS), the Cement and Lime Mineral Products Association (CLMPA), the GMB and RMT unions, the Aberdeen & Grampian Chamber of Commerce (AGCC), the East of England Energy Group (EEEG), the International Association of Drilling Contractors (IADC), the Global Underwater Hub (GUH), the British Rig Owners Association (BROA), NOF, and the Energy Industries Council (EIC).
“Back North Sea Oil and Gas. Not Imports,” the letter is headed.
“Where things are made and who makes them matters. Recent geopolitical events have reminded us that energy security and industrial resilience are inseparable,” the letter states.
“Countries that produce, build and manufacture retain greater control over their economic destiny. Those that become increasingly reliant on imports leave themselves exposed to decisions made elsewhere. That is why the future of our offshore energy sector matters far beyond energy alone,” it adds.
“Let’s be clear. We support the government’s ambition to build a secure, lower-carbon energy system. The growth of offshore wind, carbon capture and storage, hydrogen and other low-carbon technologies present economic and industrial opportunities for the UK and should be embraced,” it continues.
“However, the energy transition will be stronger and fairer if it is built on an all-energy approach; one that builds on our industrial strengths rather than overlooks them,” it notes.
“The truth is our country will continue to need oil and gas for decades to come. The question is not whether we use these resources, but whether we produce as much of them as possible ourselves or become increasingly dependent on imports from overseas,” the letter goes on to state.
The letter concedes that imports “will continue to play an important role in our evolving energy system” but said “they should be a complement to domestic production, not a substitute”.
This letter also noted that support for the North Sea is about more than oil and gas.
“It is a signal that the country remains committed to producing, building and manufacturing,” it states.
“It is a signal that government backs the people and places that have powered this country for generations,” it adds.
OEUK’s statement revealed that the letter is being sent to all 403 Labour MPs and emphasized that the letter “makes clear that the UK economy is at a turning point”.
“Decisions made now will be key to the economic success or failure of the UK in the coming decades,” OEUK said in its statement.
OEUK Chief Executive David Whitehouse said in the statement, “our colleagues in other industries are joining us to show their support for this basic message”.
“Energy security, economic resilience, and reindustrialization depend on maintaining domestic energy production as well as greater investment in renewable and low-carbon technologies,” he added.
“We fully support the government’s ambition to build a secure, lower-carbon energy system, but energy transition must follow an ‘all-energy approach’ that builds on existing industrial strengths and strengthens rather than weakens national industrial capability,” he continued.
Steve Elliott, Chief Executive of the CIA, said in the statement, “as a key foundation industry which is core to jobs and the wider economy the UK chemical sector must attract investment”.
“Fundamental to that is our ability to access competitive and secure energy to run our factories and to produce the critical materials that underpin the country’s critical infrastructure, our growth sectors and the clean energy future,” he added.
“If the new administration is serious about re-industrialization and good growth across the country, then it must do all it can to make that energy competitive and secure,” he continued.
“Backing North Sea oil and gas alongside renewables is not about slowing progress. On the contrary, it is about strengthening industrial competitiveness, protecting jobs and reducing reliance on imports in an increasingly volatile world,” he said.
“This morning’s announcement is a key part of the answer, let’s get on with it,” he went on to state.
GMB Union General Secretary Gary Smith said in the statement, “in an increasingly uncertain world, it is more important than ever that we can get the energy we need to power our homes, businesses, and essential public services”.
“We will need oil and gas for decades to come. Increasing our reliance on imported energy from overseas for the essential elements that power our economy and keep the country going, leaves us worryingly exposed,” he added.
“GMB is looking to the government to show it understands the significance of this moment - jobs, communities, and our national security are at stake,” he said.
Elizabeth de Jong, Chief Executive Officer of Fuels Industry UK, noted in the statement that “the UK continues to need fuels”.
“It makes sense to maximize the value created here at home by supporting both refineries and North Sea production. Domestic manufacturing sustains high-skilled jobs, strengthens energy security and underpins our industrial future,” de Jong added.
Rigzone contacted the UK Department for Energy Security and Net Zero (DESNZ) and the London branch of the Labour Party for comment on OEUK’s statement and the letter.
In response, a government spokesperson told Rigzone, “oil and gas production will be with us for decades to come, and we will manage existing fields for the entirety of their lifespan - while actively scaling up clean energy industries in the North Sea”.
“Issuing new licenses to explore new fields cannot give us energy security and will not take a penny off bills,” the spokesperson added.
“Our ambitious plans will make the North Sea a clean energy powerhouse and support up to 40,000 new jobs in Scotland by 2030, the spokesperson continued.
At the time of writing, the London branch of the Labour Party has not responded to Rigzone.
In a speech streamed on his X page on June 22, UK Prime Minister Keir Starmer announced his resignation.
“Every decision I’ve taken has been about putting the country I love first. That is why I will resign as leader of the Labour Party,” he said in the speech.
“I will ask the National Executive Committee of the Labour Party to set out a timetable, with nominations opening on the 9th of July and completed by the summer recess,” he added.
“In the case of a contest, this will ensure a new leader is in place before parliament returns in September. I will remain in post as Prime Minister until the contest is complete,” he continued.
To contact the author, email andreas.exarheas@rigzone.com
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