A new independent taskforce has been launched that will map out an orderly transition for the North Sea to safeguard tens of thousands of jobs and help secure its long-term future as a critical national asset.

The North Sea Transition Taskforce will be led by Philip Rycroft, a former permanent secretary in the UK Government, who will pull together expertise from supply chain businesses, unions, environmental groups, and energy policy experts to deliver the widest possible consensus on the right way forward. 

The launch of the taskforce coincides with the publication of the latest energy transition survey from Aberdeen and Grampian Chamber of Commerce, which shows declining trends in the value of work in production, exploration, renewables and decarbonisation, with decommissioning the only sector experiencing consistent growth.

As it stands, confidence in the North Sea over the next five years is at an all-time low, worse than at any point during the financial crisis, oil price crash, or during the Covid-19 pandemic.

Despite that decline, the report found a general sense of optimism regarding the UK, Scotland, and Aberdeen’s role in the energy sector, especially around innovation within the renewables sector and commitments to net zero targets.

It also found an upward trend in organisations developing structured environmental, social, and governance (ESG) strategies, with increasing board oversight and accountability, while the number of companies without any ESG plans has declined.

Hoping to capitalise on these emerging trends, the new taskforce will hold its first meetings before the end of the year and is due to publish recommendations for the Scottish and UK Governments next Spring on the best routes to transition North Sea production away from oil and gas to low carbon industries. 

The work will involve careful consideration of job security, with the British Chamber of Commerce warning that without an orderly transition, 200,000 jobs could be at risk, which could lead to a repeat of the devastating impact on Scottish communities last seen in the coalfield closure programme of the 1980s.

Alongside those concerns, Rycroft said key questions needed to be answered on a range of topics including licensing, decommissioning and investment, as well as ensuring effective legislation and the right fiscal and regulatory framework to manage the transition.

“There is no doubt the North Sea will continue to have a vital role in the UK’s energy supply for many years. However, the approach to moving away from oil and gas to low carbon industries is a careful balancing act,” said Rycroft.

“Alongside the dialogue between Government, business, NGOs and the public on current and emerging issues, our work will look to ensure a long-term strategic vision that will help to protect the highly skilled North Sea workforce and guide future operations.”

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For its part, the Aberdeen Chamber of Commerce sees the taskforce as a vital lynchpin in its plans to scale up new low carbon industries in the region and reskill tens of thousands of oil and gas workers.

“There is too much at stake to gamble Scotland’s future away by kicking this can down the road or risking the UK’s future prosperity by indulging in political point scoring rather than working together to find a way forward,” wrote the Chamber’s chief executive, Russell Borthwick, in a blog announcing the taskforce.

“There is a new chapter to be written for the North Sea and for the tens of thousands of people whose livelihoods depend on it. One where the North Sea’s assets and infrastructure serve as a catalyst in the energy transition and its workforce drive the change, rather than being left behind.”  

The UK Government has made it clear that the transition toward clean energy is at the top of its priorities, with billions being made available through GB Energy to develop partnerships with Scottish public bodies in the clean energy sector and support the creation of new jobs in the private sector.