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IET response to managing the future of UK oil and gas inquiry

The Institution of Engineering and Technology has responded to an inquiry from the Energy Security and Net Zero Committee on managing the future of UK oil and gas.

The inquiry aims to:  

  1. Make recommendations for creating a long-term, credible North Sea Just Transition Plan for the onshore and offshore workforce; including goals, parameters and next steps
  2. Assess what role the government’s current policies, including the British Jobs Bonus and Great British Energy, can play in delivering a just transition for the North Sea, and 
  3. Consider the risks of failing to deliver this
  4. Identify any additional policy mechanisms and institutions needed
  5. Determine how best to keep industry engaged with the oil and gas industry as outputs decline
  6. Examine how gas might most effectively be removed from home heating.

Drawing upon the wealth of expertise in our membership we outlined that oil and gas will continue to play an integral role in meeting consumer needs during the transition.

Our broader recommendations include:

  • Deliver a comprehensive long-term strategy - Any strategy must provide clear considerations of the continuing role that oil and gas play in the national energy system to provide sector certainty and direction.
  • Acknowledge oil and gas production remains a substantial fiscal contributor – Any policy changes should ensure that UK supply is not prematurely curtailed in a way that increases dependence on higher-emission imports and erodes energy security. Responsible curtailment must be as smooth, reliable and resilient as possible.
  • The principle of whole-system carbon responsibility should underpin all policy directions - A policy that reduces domestic production while increasing reliance on higher-emitting imports risks lowering territorial emissions without delivering real climate benefit. 
  • Address skills barriers - The energy transition will require huge amounts of skills and jobs and is one area where the UK does possess a transferable asset from the oil and gas workforce. Barriers must be addressed to realise this potential
  • Publish a UK oil and gas strategy that outlines the parameters of future production - As oil and gas will remain a key part of the UK’s energy network, it will be essential for industry to have clear direction from government to internally prioritise and transition key infrastructure.