Associate feature: Generating energy for the future of Scotland

The early months of 2025 will shape the future of the nation’s offshore energy sector and the country’s economic and climate goals for decades to come.   

Decisive, pragmatic action is needed.

UK Government consultations are underway on several relevant areas for the domestic oil and gas sector. Whitehall departments are braced for the Treasury’s comprehensive spending review. Meanwhile, here in Scotland, the Scottish Government is still to publish its energy strategy. All of this will shape the future of our North Sea, and the contribution that the sector will make.

So, these early months of 2025 matter. This industry will put solutions on the table, and show a path to economic growth, skilled jobs, energy security while addressing our climate goals.

The offshore sector’s strategic value to Scotland has been proven over six decades. Today it supports 90,000 skilled jobs, contributes £18.9 billion to the economy, and supports supply chain companies recognised globally, from logistics companies in Shetland to innovative high-tech SMEs in Glasgow.

But to meet energy demands while increasing renewable sources for the whole of the UK, we need clear, joined-up policies and long-term stability to attract investment.

While the UK now has a commendable goal of a decarbonised electricity grid by 2030, this is far from the full story.

Electricity accounts for less than a quarter of total energy consumption, with heating, transport, and heavy industry are today still reliant on oil and gas. Ignoring this reality risks deepening reliance on costly, higher-emission imports, undermining energy security and economic stability.

Support for a fully integrated system combining renewables with oil and gas is therefore key to Scotland’s economic and climate goals. It’s this pragmatic and integrated approach which will realise the transformative opportunity of a homegrown energy future.

Across the UK, we currently produce only half of the oil and gas we consume. Every barrel we don’t produce must be imported, often at higher environmental and economic costs.

If governments are serious about reaching net zero – and they should be – then the opportunities in the offshore sector must be realised.

The East Coast Cluster carbon capture project has received the green light, but other projects, such as the Acorn carbon capture scheme in Aberdeenshire, must also be unlocked to build the carbon storage infrastructure necessary for net zero in a commercially viable way.

ScotWind offshore wind and the INTOG initiative which supports innovation in floating wind and decarbonises offshore platforms with wind energy, can drive sector evolution, while hydrogen production offers a future opportunity for Scotland.

However, this potential requires faster pace, regulatory certainty, and a unified energy strategy integrating oil, gas, and renewables.

Put simply, the Scotland and the UK’s energy future must balance decarbonisation with the ongoing importance of oil and gas and attract investment from a globally competitive market.

That is the only way we can deliver energy security, invest in new technologies, and ensure communities – particularly in the north-east – thrive.

Energy self-reliance has never been more crucial. In a world of geopolitical tensions, the North Sea is vital for national security, economic growth, and innovation.

As the Prime Minister recently emphasised, energy self-reliance strengthens the country in a vulnerable world.

It is clear to me that political leaders who I meet from across the UK increasingly recognise the sector’s role in jobs, economic value, and homegrown energy.

But for success, government policies must enable investment and innovation. Scotland is well-positioned to be an energy powerhouse, however this requires sustained effort, clear policies, and close collaboration across sectors.

Working with the offshore industry will pave the way for a homegrown energy future.

This article is sponsored by Offshore Energies UK (OEUK).

oeuk.org.uk