A new report from The Jobs Foundation, supported by the UK union GMB, argues that current government policy in the North Sea is causing significant job losses in the oil and gas sector without generating sufficient new employment in clean energy to compensate.

Policy Impact on Employment

The UK government's stated policy aims to decarbonize power generation and transition from domestic fossil fuel production, projecting the creation of up to 400,000 jobs in low-carbon technologies. However, the report contends that these new jobs are not materializing at the pace needed to offset redundancies in the upstream oil and gas sector. It warns that job losses are accelerating and, based on analysis from Robert Gordon University in Aberdeen, could reach the equivalent of 1,000 jobs per month through to 2030 unless policy changes.

Criticism of Government Approach

The GMB union has strongly criticized the government's strategy as "delusional" and accused it of "wishful thinking." Key policy decisions cited as drivers of job losses include:

• The extension of the Energy Profits Levy to 2030, despite industry calls for its removal to sustain investment.
• Restrictions on new licensing, limiting it to tie-backs to existing infrastructure.

The union criticizes Energy Secretary Ed Miliband for failing to deliver a "just transition" for energy workers and for not generating more domestic manufacturing and engineering jobs. A parallel is drawn to the 1980s UK mining industry closures, which led to community decline.

Regional and Comparative Concerns

The city of Aberdeen, formerly Europe's oil capital, is highlighted as the primary casualty, facing a quickening "drumbeat of redundancy announcements." The report contrasts the UK's approach with that of other nations, which are argued to be using renewables to bolster their industrial bases while continuing to support their oil and gas production, rather than "self-harming" their existing energy sector and job market.