North Sea transition is 'running out of time' with 25,000 jobs lost since election, taskforce warns

From the Newshound archive · first published 22 September 2026 · last updated 23 September 2026.

A government-backed taskforce has warned that 25,000 North Sea oil and gas jobs have disappeared since Labour's 2024 election victory, with skilled workers and critical industrial infrastructure being lost more quickly than renewable energy industries can absorb them. The North Sea Transition Taskforce, backed by the British Chambers of Commerce, says the pace of decline in oil and gas activity risks tipping into "disorderly decline" rather than a managed transition. Taskforce chair Philip Rycroft warned the window to manage the process well "remains open, but it has narrowed considerably." Aberdeen and its surrounding area are the worst affected, with roughly one in four local workers employed in or supporting the offshore energy sector.

The taskforce wants the windfall tax abolished by 2027 rather than 2030, saying the change would free up to £50 billion in private investment.

Oil and gas still accounts for 115,000 jobs directly and across supply chains throughout the UK, but the sector is contracting more quickly than green alternatives are expanding.

North Sea workers reportedly deserve compensation for jobs already lost, as pressure mounts on Labour to act urgently.