The energy transition is often framed as a decisive shift from hydrocarbons to renewables. In practice, it is proving to be far more complex.
Rather than a single event, the transition is emerging as a gradual and uneven rebalancing of the energy system - one that must carefully reconcile decarbonisation ambitions with security of supply, affordability and economic stability.
This reality sits at the heart of the energy industry’s current challenge. Momentum behind renewables, storage and grid infrastructure is accelerating, yet fossil fuel based energy sources continue to play a vital role and will do for some considerable time to come. Oil and gas operations not only underpin current energy resilience but also support investor confidence and the skills base required to deliver low-carbon projects at scale. As highlighted in our recent report, Evolution not revolution: investing in the energy transition, progress is not linear, rather it is iterative and, at times, uncertain.
Few places illustrate this tension more clearly than Aberdeen and the North-east of Scotland. Long established as a global centre for oil and gas, the region now faces a pivotal question: can its expertise be successfully transferred into the industries of the future?
The answer is not straightforward. While there is a strong narrative around the transferability of skills, the reality is more nuanced. Core engineering capabilities developed over decades in offshore oil and gas remain highly relevant across renewables, hydrogen and carbon capture. Likewise, project management, legal, financial and operational support functions can, generally speaking, transition relatively smoothly.
Malcolm Gunnyeon
However, moving from traditional energy to emerging technologies is not a simple cut and paste exercise. New sectors bring new operational environments and risk profiles. For example, offshore wind operations differ significantly from oil platforms, often involving smaller teams, increased isolation and lone working, and more complex access arrangements. These differences create a clear need for reskilling and adaptation, particularly in frontline roles.
Yet this challenge also represents a significant opportunity. The existing workforce, with its strong safety culture and depth of experience, is arguably best placed to bridge the gap. The greater risk lies not in the skills mismatch itself, but in failing to act. Without clear pathways for transition, talent may migrate elsewhere, taking expertise, and economic value, with it.
If this gap is not managed carefully, it could undermine both delivery and investor confidence. Skilled individuals, for example in engineering, project delivery or offshore operations, are essential to the successful rollout of new infrastructure. Losing that talent, even temporarily, risks delaying projects and weakening the UK’s competitive position, perhaps irreparably.
Investor confidence remains a defining factor in the pace of the transition. Capital will flow to jurisdictions that demonstrate clear strategy, policy stability and a credible plan for workforce development. Where there is uncertainty investment may be diverted elsewhere.
Closely linked to this is the significance of perception. Narratives around the energy transition can be highly polarised, often presenting it as either a rapid revolution or a continuation of the status quo. In reality, the most viable and sustainable path lies between these extremes.
Martin Ewan
Improving public understanding of this balance is essential. A more informed and nuanced debate, which recognises the continued role of oil and gas alongside the growth of renewables, can help create the stable environment needed to attract long-term investment. For example, in the short-term, fossil-derived petrochemicals will continue to be a vital feedstock for epoxy resins used in wind turbine blades, and plastics and related materials used in solar panels and battery components.
Global uncertainty adds another layer of risk. Geopolitical tensions, supply chain disruptions and volatility in commodity markets all have the potential to accelerate or hinder the transition.
On one hand, instability can strengthen the case for renewable energy by highlighting the risks of reliance on imported fuels. On the other, it can encourage some countries to prioritise short-term energy security through continued investment in traditional resources.
For the UK, this dual dynamic presents both challenge and opportunity. With access to both domestic oil and gas resources and significant renewable potential, the UK is uniquely positioned to balance security and sustainability.
The UK, and particularly the North-east of Scotland, has the infrastructure, expertise and regulatory framework to establish itself as the global energy hub for the future.
However, this position is not guaranteed. Competing regions are equally ambitious, and the window to act is finite. Success will depend on the ability to manage risk, retain and develop talent, and create the conditions for sustained investment.
The transition is not without its challenges but seizing the opportunity it presents is still within our control. By embracing a pragmatic, “evolution not revolution” approach, one that balances ambition with delivery, the sector can navigate this period of change successfully and secure the economic future of the North-east.
To download ‘Evolution not revolution: Investing in the energy transition’ visit brodies.com/energy-transition