The Aberdeen & Grampian Chamber of Commerce (AGCC) has issued a pressing appeal to both the UK and Scottish governments to convene an emergency summit addressing the escalating crisis in the North Sea energy sector. This follows the announcement of nearly 600 job losses within a fortnight, including 250 redundancies at Harbour Energy, the UK’s largest oil and gas producer.
AGCC Chief Executive Russell Borthwick criticised the UK Government’s Energy Profits Levy, stating it has “starved the sector of investment and damaged the very supply chain we need to deliver net zero.” He emphasised that the current fiscal environment is leading to deindustrialisation in the UK’s energy capital, Aberdeen.
A recent Survation poll revealed that 68% of UK voters prefer meeting oil and gas demand through domestic production rather than imports. Additionally, 62% believe the windfall tax has been ineffective in reducing household bills, and three times as many respondents view the tax as unfair compared to those who see it as fair .
The AGCC’s call to action includes three key demands:
- Removal of the Energy Profits Levy before the next financial year.
- A funding commitment to the Acorn carbon capture project.
- An emergency summit involving both the Prime Minister and First Minister to prevent further job losses and rebuild confidence.
The situation has drawn attention from various stakeholders. Kerry Smyth, a Harbour Energy worker facing redundancy, expressed the emotional toll on employees, stating, “People are sad, they’re worried, but no one is surprised… what we want to see from the government is that they actually care about that.”
Donna Hutchison, CEO of Aberdeen Cyrenians, warned that the job losses could exacerbate social issues in the region, including child poverty and substance-related harm. She emphasised the human impact of these economic changes, urging policymakers to consider the broader societal consequences.
The AGCC’s urgent plea underscores the need for immediate government intervention to address the challenges facing the North Sea energy sector and to support the communities and workers affected by these developments.
