The UK Government should avoid hastening the wind-down of Scotland’s oil and gas industry until clean-energy roles are being created at sufficient scale, a cross-party group of MPs has warned.
In a report published by the House of Commons Scottish Affairs Committee, MPs say the sector is at a “critical juncture” and caution that new jobs in renewables are not yet replacing those lost across the North Sea supply chain. Chair Patricia Ferguson said the shortfall is “leaving communities exposed,” adding that ministers must “move quickly to plug this employment gap and ensure a smooth transition for workers and regions.”
The committee urges Westminster to:
- Set out urgently how it will address the jobs gap.
- Take a pragmatic approach to North Sea licensing and clarify what new drilling can proceed under existing exploration licences.
- Reform the windfall tax “as soon as possible,” warning the current regime risks accelerating decline and hollowing out the supply chain.
- Accompany every environmental impact assessment with a statement explaining how environmental, energy-security and economic factors were balanced.
While acknowledging fossil fuels will remain part of the UK’s energy mix for years, MPs argue easing the gradient of production decline would help retain highly skilled workers needed to build up clean-energy industries.
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The report also criticises both the UK and Scottish Governments for reacting too slowly to the closure of Grangemouth refinery, calling the resulting shock to local employment “avoidable” and urging that it be used as a case study to improve future transition planning.
Ferguson described Grangemouth as the “canary in the coalmine” for the energy transition, welcoming the UK Government’s recent clean-energy workforce plan but saying it must translate into “good, secure jobs.”
Climate campaign group Uplift supported the push to speed up job creation in Scottish renewables, but warned against slowing the shift away from fossil fuels. Executive director Tessa Khan said ministers should “double down” to ensure the expansion of offshore wind delivers more manufacturing roles in Scotland.
