New research shows that domestic offshore energy production drives significant economic growth in the North East, Yorkshire and the Humber. 

The Offshore Energies UK’s flagship Economic Outlook Report shows that the oil and gas sector continues to be a major driver of economic growth in the North East, Yorkshire and the Humber, supporting around 15,300 jobs and contributing £1.1 billion in general value-added (GVA).

It reveals that the UK must unlock £100 billion of private sector investment so its supply chain and skilled workforce can build key projects to safeguard today’s energy security - and the renewable infrastructure to get the UK to net zero by 2050.

The report pinpoints the actions policymakers must take in partnership with businesses to get investment moving and tackle the energy challenges facing the nation and its households.

It finds that total offshore energy spending across the UK could reach £200bn this decade in oil and gas, offshore wind, carbon capture and storage and low-carbon hydrogen. But about half of this amount - £100 billion - is waiting on Final Investment Decisions from businesses that need renewed certainty to sign off.

To unlock these funds, OEUK has identified a number of critical actions, including concerted policy support, a stable and globally competitive tax regime and improved planning and regulatory timelines.

The report details the key moves necessary across all areas of the energy mix to make the UK globally competitive.

Commenting on the report, OEUK chief executive David Whitehouse said: “Parliaments may thrive on opposition and argument, but we know big engineering projects only succeed through collaboration.

"The transition to net zero will be the biggest engineering project this country has ever seen. We need consensus to support the very industries and workers whose skills are vital for building our energy future.

“In recent months we have felt the direct impact of underinvestment in homegrown energy on job security for our workers, the competitiveness of our firms internationally and our future energy bills.

"Our report shows that with the right frameworks in place, this industry can make the long-term investments to help the North East and the rest of the UK tackle these challenges head-on."

“If we are to unlock the £100bn of company investment and all the jobs, economic growth and progress towards net zero which comes with it for places like the North East, the UK mustn’t just become a good place to do energy business, it must become irresistible.

"Our Economic Report shows that as the global race for energy investment accelerates, the UK must compete by making the most of its diverse homegrown industry, from oil and gas to offshore wind, hydrogen and carbon capture. Globally, this is the lesson other countries have learnt. We must not get left behind.

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“Our sector recognises that our energy mix must change and shares the UK’s climate goal ambitions. As we look to successfully manage the shift to a lower carbon world there is no simple choice between oil and gas and renewables, we need both as we cut emissions and decarbonise the economy.

"Many of the companies investing in opportunities like carbon capture, hydrogen, and offshore wind will require the cashflow from a stable and predictable oil and gas business to fund these opportunities.”

“Today the offshore oil and gas industry supports around 220,000 jobs and in 2022 generated almost £30bn in GVA, representing around 1.5% of the total UK economy. We’ll be publishing analysis later this year on the wider benefit of the UK offshore energy industry.

"This is the bedrock of expertise on which we can build future energy infrastructure for the benefit of everyone in the UK.”