OEUK CEO issues message ahead of UK elections

The UK offshore energy industry has much to offer the next ruling party, but it currently has the most to lose.

This was said by Offshore Energies UK (OEUK) chief executive David Whitehouse in a message to members on Wednesday evening, adding that apprehension about the future of oil and gas, wind and the wider offshore energy sector in the UK was already disrupting investment.

“Recent months and weeks have shown the extent of concern, with businesses, unions and former politicians speaking out in favour of a pragmatic approach,” Whitehouse said in the message, which was also sent to Rigzone by the OEUK team.

“To calm tempers and ensure economic growth, whichever party forms the next government must deliver on its promises to engage in dialogue and listen to our concerns about the tax regime and oil and gas licenses,” he added.

“All political parties have placed economic credibility and growth at the heart of their electoral strategy. Whichever party forms the next government, the choices – and the consequences of those choices – are clear,” he continued.

“We can leverage the best of UK businesses, infrastructure and people to drive a local energy transition or take a path that increasingly relies on others. To grow the economy and achieve carbon neutrality in a way that leaves no one behind, OEUK has been lobbying all parties to choose a local energy transition,” Mr Whitehouse continued.

In his message, Whitehouse said that decarbonising the UK economy “may be one of the greatest opportunities of our time, with the potential to create wealth in every community across the UK if we get it right”. However, he warned that “policy mismanagement and lack of trust risk undermining this goal”.

“Today, UK offshore energy companies support 200,000 jobs,” Whitehouse said in the message.

“Many of those who work directly for producers and the wider supply chain are highly skilled. These people are mobile talent and we need to keep them here, otherwise we risk losing them to other countries, which would slow down our transition to other countries,” he added.

“The offshore energy industry of tomorrow is upon us. From Newcastle to Cardiff to Aberdeen, these people deserve to be part of the decisions that impact this industry,” he continued.

“The UK’s national debt is now 100% of annual national income, the highest level in sixty years. The UK spent £42 billion ($53.62 billion) on oil and gas imports last year. We need policies that attract private investment, not discourage it,” he said.

“The only way for the next government to grow the economy and not just manage it is to partner with industries based here and committed to achieving net zero emissions,” he continued.

A thriving economy is the foundation of a local energy transition, Whitehouse said in the message.

“Fiscal security, competitive returns and long-term commitments from policymakers across the energy landscape will be essential,” he said.

“Any future government will have to reconsider over-regulated markets and punitive tax regimes that restrict such practices,” he added.

The decisions policymakers make in the coming weeks will have repercussions for decades to come, Whitehouse warned in his message, noting that they “will shape the future of our economy and our energy security.”

“These decisions must be made in partnership with the people, communities and sectors affected, not made for them,” he said.

“This industry can grow the economy, support jobs, reduce emissions and deliver a local energy transition. The opportunities are inspiring and we need the industry to be optimistic about its potential,” he added.

“This optimism can only begin by seeing the next government transform its words into pragmatic and encouraging words,” Whitehouse continued.

Rigzone asked the Conservative Party, Labour Party, Reform UK, Liberal Democrats, Green Party, Scottish National Party and Plaid Cymru for comment on Whitehouse’s post. At the time of writing, none of the parties had responded to Rigzone.

According to a voting intention tracker on the YouGov website, as of July 3, Labour is on 39%, the Conservatives on 22%, Reform UK on 15%, the Liberal Democrats on 12%, the Green Party on 7%, the Scottish National Party on 3% and Plaid Cymru on 1%.

A general election is taking place in the United Kingdom today. The country’s previous general election was held on 12 December 2019.

OEUK represents more than 400 companies of all sizes producing oil, gas, wind and hydrogen, as well as carbon capture technologies and the energy supply chain, the organisation notes on its website.

To contact the author, send an email to [email protected]