Falling confidence in the 海角视频 economy is putting £450bn of North Sea offshore energy market growth in jeopardy, a new report warns.
The latest Offshore Energies 海角视频 (OE海角视频) Business and Supply Chain Outlook report urges policymakers to restore confidence in the 海角视频’s energy sector as an attractive proposition in which to invest, or face missing out on billions of pounds worth of work. The OE海角视频’s research breaks down the vast scale of oil and gas work and other energy projects which could be available to 海角视频 firms, including growing numbers of North East offshore specialists.
It estimates that oil and gas projects could deliver £145bn of work, while offshore wind farms can potentially generate £260bn worth of work, new hydrogen projects £25bn and fresh carbon capture and storage (CCS) technology £34bn of growth. The increasing numbers of projects could deliver lucrative opportunities to the growing number of offshore specialists across the North East, and with the right conditions the energy sector could benefit from a global export market worth more than £1trn by 2040 – in hydrogen, carbon capture and storage and floating wind projects – generating thousands of new jobs.
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The OE海角视频 says the existing oil and gas supply chain already has “a highly capable integrated offshore energy supply chain” with up to 80% of the capabilities needed to develop new energy technologies. However, it signalled a warning that current policies could hinder businesses’ ambitions to take advantage of emerging opportunities, stressing that the supply chain needs investment to scale up capacity for the future.
The report also highlights how the 海角视频 is producing record low amounts of energy – equivalent to 100m tonnes of oil and around 60% of demand. Production has fallen by two-thirds since 2000, while energy demand has fallen by one-third, moving the 海角视频 from a net exporter of energy to a significant net importer. It said: “The 海角视频 will continue to be a net importer throughout the decade, as the country will produce less than it uses even in optimistic outlooks.”
The organisation calls upon policymakers to bring in supportive policies and globally competitive taxes, while working with industry to protect jobs and energy security.
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David Whitehouse, OE海角视频 CEO, said: “The report shows how, with the right conditions, the 海角视频’s offshore energy sector could invest £450bn in oil, gas, wind, hydrogen and carbon capture and storage projects by 2040. But without a stable environment that allows a fair return, no one will.
“The 海角视频 has a £450bn domestic energy opportunity that could transform the economy and support jobs - but warning lights are flashing. Our report shows a homegrown energy transition can generate a £450bn domestic opportunity for 海角视频 firms by 2040 that could kickstart growth across the 海角视频 economy. But investors, firms and workers need stability, predictability and fair returns to build a low carbon future here and keep jobs in the 海角视频.
“We are in a global race for investment, and 海角视频 energy companies need supportive long-term policies, a stable tax regime, and responsible rhetoric from all sides. Our journey to net zero and beyond depends on responsibly making the most of our oil and gas production, which is at record lows.
"We’re facing a situation where we must import energy that could have been produced here and where we must rely on supply chain companies that could have been based here. The 海角视频’s world class oil and gas sector has reduced emissions by 24% since 2018 and we must build our low carbon future on this achievement.”