Reasons to be cheerful about Scotland’s energy future

Offshore Energies UK

The UK energy debate is often presented as a stark choice between the oil and gas industry of yesterday and the renewable energy of tomorrow

According to David Whitehouse, the chief executive of Offshore Energies UK (OEUK), framing the future of energy as a choice between the old and new misses the important question: how do we build a collaborative energy system that is secure, affordable, increasingly lower carbon, and capable of supporting economic growth?

The answer lies in building on the strengths of both.

“Scotland has a brilliant opportunity in the energy transition,” he says. “We have a world-class oil and gas sector and all of the skills that come from it. The UK already has over 12,000 onshore and offshore wind turbines installed. We also have enough carbon storage potential to store more carbon dioxide than the UK has produced since the start of the industrial revolution. If you were any other country, you would look at Scotland and the wider UK and say that is the country that should deliver a successful energy transition.

“What does a successful long-term energy future look like? We should see more jobs created, not fewer; we should be producing more of our own energy, not less; and we should be delivering affordable, secure and sustainable energy. People  want to see us tackling climate change in a way that is good for communities. These are the reasons that I took on this role, to play a part in making that happen.

“We have the resources, the skills, and the industrial base. What we now need is a policy approach that recognises we’re all in this together.”

As the chief executive of a body that represents more than 450 organisations involved in oil and gas, offshore wind, hydrogen and carbon capture and storage, for Whitehouse this recognition depends upon rejecting the divide that has crept into the conversation: oil and gas versus renewables. Instead, it means recognising those who work in the fossil fuel sector are a vital part of the energy mix and will remain so going forward – with their skills as important and relevant as those needed in renewables. 

However, he caveats this by saying: “The way we will be successful is by removing the polarisation in this debate. Real success is about taking action delivering a future where we produce more of our own energy but there are also more jobs, more value in our economy, and it’s decarbonised. 

“At a very simple level, what we want from not only the Scottish Government but the parliament is fundamentally to share that vision – that we are all in this together. We don’t need to divide our industries into the clean and dirty, or good jobs and bad jobs. What we want is a narrative that comes from parliament that says: ‘We are going to support Scotland’s proud industries and that means we’re going to make the most of our oil and gas expertise. We will continue to prioritise our own production over imports and we will use this as a platform to help support our world-class renewable sector.’ 

“So, for me, very simply, what we want the Scottish Parliament and every MSP to do is support Scotland’s industries and communities.”

Alongside the Scottish Government, there is now a new prime minister and a new energy secretary. Whitehouse believes this changing political landscape presents a genuine opportunity for an energy policy reset – one that strengthens the UK’s and Scotland’s energy security, industrial base and economic competitiveness.

“What has been important over recent months is the call for a pragmatic, balanced approach that makes the most of all of our industries. 

“You hear it from organisations such as OEUK, but you hear it also from important organisations like Scottish Renewables, whose former CEO Claire Mack has made a very important intervention in that space. 

“You hear it from the British Chambers of Commerce and the Confederation of British Industry, from Juergen Maier, the chair of Great British Energy. Importantly, you hear it from people such as Dale Vince [founder of Ecotricity] and Greg Jackson [CEO of Octopus Energy]. You hear it from the trade unions.

What has been important over recent months is the call for a pragmatic, balanced approach that makes the most of all of our industries

“Now we want a Scottish Parliament to back these calls for a balanced approach. Fundamentally, this must be a fair and just transition. A transition cannot be called just if it leaves people out of work, makes communities poorer, and increases imports of the energy we can produce ourselves.

“The way you get it right is by engaging and listening and, when there’s a pragmatic argument, you support industries and make them part of the transition.

“This is important because, without it, this will not feel just. A transition is only successful if you do it with people, not to them. 

“In my view, you cannot deliver a just or fair transition if you make the country poorer. We must have a vision where we are growing the economy. If we can get that right, we will create more jobs and economic value and reduce emissions at the same time. But on this journey we must recognise it’s not oil and gas versus renewables – we need both.” 

Whitehouse points out decades of investment have created an extraordinary concentration of engineering expertise, offshore capability, supply-chain businesses, infrastructure and technical knowledge, allowing the North Sea to be viewed as a platform for the energy transition, not an obstacle to it. 

He adds such a wealth of talent cannot be switched off and recreated whenever needed – ensuring skills are not lost requires collaboration among energy organisations and a new level of partnership between government and industry, one in which businesses are given the confidence from a policy, regulatory and fiscal environment that allows them to plan, invest and innovate.

Much of this investment will be in people, with Whitehouse pointing out: “We are ahead of other countries because we have an extremely skilled workforce. We need a narrative that attracts new people into the sector while valuing and providing opportunities for those already working in it.

 “It is about creating the conditions where we are seeing growth in activity and creating the jobs people have been promised for decades now.”

Ultimately, for Whitehouse and OEUK, the North Sea is not an either/or choice between oil and gas and renewables but an asset that can power both today’s needs and tomorrow’s future. There are, however, challenges.

“I don’t think you can expect government to simply provide subsidies for all of the opportunities we have. I think we can learn a huge amount from the UK success story in fixed-bottom wind [offshore turbines attached to the sea floor] about how costs were driven down. We need to take that same drive and apply it to carbon storage, floating wind and our hydrogen opportunities. That, for me, is one of our biggest barriers. It is recognising we have to make that portfolio of projects investable. That requires governments, regulators and industry working together to create conditions for investment and reduce reliance on subsidy over time.

“The other requirement is collaboration – across industry, regulators, government, supply chains, and indeed across Europe. We need to bring people together and make the most of the strengths we have.

“We should not talk down to proud industries or proud people but make them part of the solution. When we speak to the public they are focused on affordability but fundamentally we want the same thing. They want a practical approach that delivers results.

“I hope our legacy is that this coalition of voices becomes the basis of policy, not just for the Scottish Government but for the Scottish Parliament and wider UK. We must deliver more jobs, more economic value and, in doing so, show the world how you lead on climate action – and in a way that works for place like Aberdeen and wider Scotland. 

“The question is no longer whether Scotland has the resources, skills and ambition to lead the energy transition. It does. The question is whether we can create the conditions to turn that potential into projects, projects into investment, and investment into jobs. That is the opportunity in front of us.

“We are looking for that reset. We need a regulatory environment that enables projects, a fiscal framework that rewards investment and a political consensus that backs Scotland’s energy industries.” 

This article is sponsored by Offshore Energies UK (OEUK)

oeuk.org.uk