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Birmingham Post
Birmingham Post
Business
David Laister

Skills shortage warning from oil and gas in transition to Net Zero

A potential looming skills shortage in the critical oil and gas sector has been flagged, with the industries seen as vital in helping the Humber’s transition to Net Zero.

The region is central to plans for the acceleration of wind, hydrogen and carbon capture and storage - all emerging and maturing elements built on a huge North Sea legacy.

A new report from Offshore Energies UK, the leading trade body for the UK’s offshore energy industry, points to the labour issue, and reveals a decline in the total number of oil and gas workers since 2010. It is now calling for the UK Government to commit to a stable, long-term energy policy that gives confidence to the sector and stimulates economic growth.

Read more: Humber carbon capture power station given go-ahead in UK first for Net Zero technology

The organisation joins a chorus seeking big decisions to kickstart the ambition, with Shadow Energy Secretary Ed Miliband recently conducting on the Humber. Much of the £15 billion of investment earmarked for the Energy Estuary is riding on opportunities provided by the sector. And OEUK said this would allow businesses to recruit and retain the talent needed to deliver secure supplies of homegrown, low-carbon fuel, power, and products to millions across the UK.

Alix Thom, OEUK’s workforce engagement and skills manager, said: “The next decade will be crucial in determining how successfully the UK will deliver a home-grown transition to Net Zero, one that meets our climate goals and benefits the domestic economy, innovation, and jobs.

The Rough platform - oil and gas legacy that could have a huge role in a hydrogen future. (Centrica)

“Given the legacy of the Humber as a world class energy producer, it’s hugely important that the local talent pipeline is nurtured, so that younger generations and existing workers can deliver the wind, hydrogen and carbon capture, and oil and gas that we will need over the coming years. To achieve this, we need governments to deliver a stable and predictable environment to do business.”

According to OEUK’s latest data, the offshore energy sector supports 14,500 jobs in North East England, Yorkshire and the Humber. However, this is a 33 per cent drop from pre-pandemic levels as the sector supported 21,900 jobs in 2019.

Ms Thom said that in order to deliver a successful energy transition, local energy businesses need to be supported to ensure their workforce is equipped with the skills of the future, as well as a bright talent pipeline.

The organisation’s Workforce Insight Report finds that with the right investment conditions, up to 26,000 jobs in carbon transport and storage, hydrogen production, and offshore electrification could be created.

Capacity building is being seen in local training infrastructure, with the likes of Catch launching its own apprenticeships and Heta now building a standalone facility to meet demand from the process industries. Timely go-ahead for projects and funding support and market mechanism confirmations are all seen as key to bringing investment decisions forward, and allowing the capability to build.

Read next:
UK 'must capture the carbon capture supply chain' to make race to Net Zero a true success story
Hull hydrogen pioneer HiiRoc wins global KPMG tech innovation accolade
Huge carbon capture pipeline project takes major step towards consenting stage
Rough returns! Centrica is back injecting gas at huge storage facility off East Yorkshire coast
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