Recent research reveals that North Sea oil and gas companies are largely failing to shift their investments toward renewable energy.
According to data from analyst firm Rystad, three-quarters of offshore oil and gas operators in the UK intend to focus solely on fossil fuel production through the end of the decade.
Out of 87 companies surveyed, only seven plan to allocate any funds to renewable energy projects in the UK, and of these, just two aim to have a majority of their investments in renewables by 2030.
Despite the Labour government’s ban on new North Sea oil and gas field licenses, existing operations are permitted to continue.
Labour’s Great British Energy initiative aims to create jobs while phasing out fossil fuel reliance.Prime Minister Keir Starmer announced the establishment of a new state-owned company, Great British Energy, which will focus on renewable projects, reinforcing the government’s commitment to a “just transition” to clean energy. This aims to create new jobs in the renewable sector as fossil fuel roles decline.
Campaigners express concern that the data indicates oil and gas companies have little intention of altering their business models.
Tessa Khan, executive director of Uplift, stated that the industry is failing to fulfill its promises and is primarily interested in maximizing profits from dwindling resources.
She warned that the lack of investment in clean energy could hinder the UK’s goal of achieving net-zero greenhouse gas emissions by 2050 and limit job opportunities for oil and gas workers.
The Department for Energy Security and Net Zero emphasized ongoing engagement with industry stakeholders to facilitate a responsible transition.
However, industry representatives argue that current investments in carbon storage and renewable energy initiatives are underway, aiming to support the UK’s energy needs while addressing environmental concerns.