The approach to transitioning the energy sector is a careful balancing act.

You don’t need to be the UK Government’s harshest critic to see that Labour are getting this balance wrong.

A serious threat hangs over 35,000 North Sea jobs. A beefed-up windfall tax threatens severe harm to our economy and workforce.

The fiscal regime of the UK Continental Shelf (UKCS) should prioritise long-term economic and energy security.

And I believe the regime should provide certainty and predictability for investment. It should provide a fair return, to support public finances. And it should find a pathway towards the basin’s energy transition.

Instead, we have a one-sided battering ram, taxing the sector into oblivion.

At a critical point in our history needing record investment in energy production, we have made the UK one of the least attractive places for investment.

Recently, one senior energy sector boss said that operating in a war zone was easier than navigating the UK Continental Shelf.

This cannot continue. It’s bad for investment, for energy security and for the 200,000 workers fearing the future.

We need an effective energy transition that does not abandon the tens of thousands of highly skilled people in the UK who rely on the sector for their livelihoods.

It must balance the diversity of our power supplies to ensure the UK’s energy security and avoid over-reliance on imported fuels, which are up to four times more carbon-intensive than ours.

Taskforce time

Earlier this year, I wrote a column for E-FWD members calling for a new independent body to oversee the energy transition. Today, that call for action is accelerating.

The British Chambers of Commerce (BCC) has called for an independent taskforce to examine energy transition in the North Sea and safeguard tens of thousands of UK jobs.

This is a significant intervention by an influential group.

The proposed independent taskforce would bring together the experience and expertise of all sectors impacted by North Sea operations, including the energy sector, economists, environmentalists and unions.

It would produce recommendations for the government on accelerating the North Sea transition while maintaining jobs, skills and employment. Crucially, it should also examine the long-term fiscal regime for the industry.

Without a long-term plan, decision-making will remain fragmented, making it harder to provide stability for those impacted. However, with a plan, this challenge becomes achievable.

Politicians cannot keep delaying. It is in everyone’s interest to find pragmatic solutions.

We need honest conversations about financing. Plans to reduce capital and investment allowances will undermine business confidence in the sector and jeopardise a successful transition. If private investment is put at risk, the repurposing of infrastructure and the pathway forward are in doubt.

A partnership approach can create a future for the North Sea that preserves the investment and skills needed for the green economy and safeguards thousands of jobs.

Last week’s announcement that the government will consult on new environmental guidance for the oil and gas sector allows all parties to shape the fair and just future everyone wants.

This task force provides the framework for this.

It’s time for a different approach.

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