The offshore energy industry has warned Labour against simplistic proposals to end new licenses for oil and gas.

Offshore Energies UK repeated its plea to Labour to engage further with industry.

It touted the approach of the US, Norway and many countries in the Middle East which are successfully working with the sector to make the most of domestic supplies and capitalise on the investment and expertise to accelerate the expansion of wind, hydrogen, and key net zero technologies.

The oil and gas industry remains essential for UK economic and environmental prosperity, supporting over 200,000 skilled jobs across the length and breadth of the country and adding over £20billion to the economy this year alone.

Investment by companies is becoming harder to secure due to political tensions over the sector’s future. The sector has consistently warned that without new investment in domestic production, by 2030 the UK will import 80% of its oil and gas compared to around half now.

Commenting, OEUK Chief Executive Dave Whitehouse said: 
“People wouldn’t forgive anyone who shut down Britain’s oil and gas industry and replaced it with imports of foreign oil and gas. Everyone is clear that the energy system must change; business and government must do this in partnership. Labour’s approach risks sending the wrong signals.

“These proposals are uncosted. The sector now needs clarity on the detail of Labours plans including analysis on what they mean for jobs, energy security and Britain’s economy.

“By investing in homegrown production, we avoid costlier, less secure, and higher carbon footprint imports while supporting the infrastructure we need to make cleaner, more affordable energy in the UK, for the UK.

"As we build that future there is no simple choice between oil and gas on the one hand and renewables on the other. The reality is that to keep the lights on and grow our economy, we need both. By the mid-2030s, oil and gas will still provide for 50% of our energy needs.

“We urge Keir Starmer and Rachel Reeves to fulfil their promise to listen to industry and engage with our workers. We need to meet our climate goals while not undermining energy security, the economy and the very people needed to deliver secure and affordable energy.”

KeyFacts Energy Industry Directory: Offshore Energies UK   l   KeyFacts Energy news: Aberdeen Focus