We need an energy strategy that is honest about oil and gas

The Labour Party and companies in the energy sector have a shared goal – to get the UK to net zero as quickly and efficiently as possible.

This requires clear, wellcommunicated and informed policy decisions to be made.

So despite warm words in support of the sector and its workforce, we remain deeply concerned by Sir Keir Starmer’s proposed ban on new licences, which will place thousands of jobs, investment and energy security at risk.

The oil and gas sector directly supports 215,000 highly-skilled and highly-paid jobs in the UK at present, including 90,000 direct jobs in Scotland, half of which are in the Aberdeen region.

It also sustains a world-class supply chain, made up largely of SMEs, which will be crucial in delivering the infrastructure and operational expertise needed to realise Labour’s ambition of making the UK a green energy superpower.

The energy transition is an exciting opportunity for this region –as nobody is better placed to take advantage of the potential economic benefits on offer. However, we are also at greatest risk if our policy makers get it wrong.

To be clear, failure in this policy area could cost up to 17,000 jobs in the Aberdeen region alone by 2030, and that crucial supply chain could be lost as the commercial opportunities in new energy are simply not available at scale yet.

The path to net zero requires four things – and they span business, government and the public at large.

First, we need to reduce fossil fuel demand, and that involves everyone. Right now, three-quarters of the UK’s energy consumption is derived from oil and gas. That’s what is fuelling 24 million homes with gas boilers, 32 million vehicles fired by diesel and petrol, and the power stations generating more than 40% of our electricity.

Second, we need to develop new sources and ways of storing energy – such as hydrogen and offshore wind – to help us further diversify our energy mix.

Third, and perhaps most importantly, we need the public and government to understand and accept that this could easily take two, perhaps three decades, to deliver.

And fourth, it requires us to find the most efficient way to source the oil and gas we need to keep the lights on and the country moving in the meantime. Nobody is calling for unlimited extraction, but the UK’s own Climate Change Committee acknowledges that oil and gas will still meet a large share of our energy demand over the next decade. Even in 2050, it will still be in significant use at over 20% of our energy mix.

If we don’t invest in new North Sea fields – including many which are already accounted for in the UK’s carbon budgets – production levels could well fall by 80% over the next decade and we will be leaving British oil in the ground while importing tens of billions of pounds of higher carbon content from other parts of the world.

That does not tackle the climate crisis or contribute to net zero –quite the opposite. It makes little economic sense, and even less environmental sense. A policy which leaves us more reliant on other countries for our energy simply grows the market share of OPEC members, which will make us more, not less, vulnerable to energy shocks.

As the GMB Union puts it, “plans not bans” are the way ahead. It is an irrefutable fact that oil and gas will remain a key component of our energy mix into and beyond 2050, so an energy plan that is cognisant of that is essential.

We believe all parties, including Labour, should adopt an explicit position on hydrocarbons, which is that if the alternative is importing oil and gas from overseas, at a greater carbon cost, then we must favour domestic production. It’s simple, it’s measurable, and it ensures that the fossil fuels that we do use are extracted with minimum impact on our climate goals.

We urge politicians of all parties to work with us, with industry and with the unions, to make our energy strategy a prospectus for growth; a plan which will herald the beginning of a new era of global energy capital status for Scotland and the UK.

The alternative path – one with a cliff-edge end to oil and gas – will decree decades of decline upon the regions which have powered the UK through the toughest of times.

I do not believe for a second that this would be Sir Keir’s deliberate intention, but it is the unintended consequence staring us in the face if a more pragmatic approach, one that secures greater energy and economic security, is not adopted.

Ryan Crighton, Director of Policy and Marketing, Aberdeen & Grampian Chamber of Commerce

Merkur chooses Aberdeen for first UK casino

High street bingo and adult gaming business Merkur has chosen Aberdeen as the location for its first casino in the UK.

Its purchase of Rainbow Casino on Summer Street has been hailed as a milestone for the group and will safeguard around 40 jobs in the city centre.

Mark Schertle, Chief Operating Officer for Merkur Casino UK, said: “We’re really excited to be opening our first casino venue in the UK and what better place to choose than Aberdeen.

“The city has a vibrant night-time economy, provides the perfect location to launch this new arm of our business and will successfully complement our portfolio of over 225 high street bingo and adult gaming centres across the UK.

“It will also be a welcome addition to our existing Merkur Slots venue on Union Street in Aberdeen, safeguard jobs and reinforce our continued investment in the local high street.

“Having already undergone a refresh and new layout of the casino, we now have some exciting plans to invest and develop the business further and look forward to welcoming new and existing customers.”

The new-look casino will include a selection of table games, including blackjack, poker and roulette, along with the latest slots products.

It will also offer a range of corporate packages to the local business community.