The energy sector in North-east Scotland has rarely faced a period of greater complexity, contradiction and consequence than it does today.
The direction of travel towards a lower-carbon economy is clear, necessary and widely supported across industry with businesses throughout the region investing significant time, capital and expertise into supporting the UK’s energy transition ambitions. From offshore wind and electrification to carbon capture, hydrogen and wider decarbonisation technologies, there is genuine innovation and commitment emerging across the sector.
It’s clear that the North Sea remains a critical component of the UK economy, energy system and wider industrial capability. Oil and gas continue to underpin a significant proportion of domestic energy demand, while the sector itself supports hundreds of thousands of jobs directly and indirectly across the entire UK. Here in the North-east of Scotland, the industry’s economic contribution extends far beyond operators and producers alone. Professional services, engineering, manufacturing, logistics, technology, hospitality, local communities and more all remain deeply interconnected with energy activity.
What we have been consistently finding from conversations within the sector, and reflected in this survey, is concern around pace and a lack of certainty – not opposition to transition itself. Businesses are increasingly operating within an environment where long-term investment decisions are being impacted not simply by taxation levels or commodity volatility, but by wider uncertainty around future policy direction and ongoing political narrative and instability.
In many respects, businesses can and still do adapt to challenge – the UK energy sector has done so repeatedly over decades. However, we know that capital investment, workforce planning and infrastructure development all require long-term visibility. Without that visibility, caution inevitably begins to replace confidence.
The latest Energy Transition Survey findings reflect an industry willing to evolve, invest and adapt but increasingly and understandably concerned about policy volatility, investment uncertainty and the absence of a genuinely balanced just transition strategy. If the UK is to achieve both energy security and successful decarbonisation, then pragmatism, stability and long-term confidence is key.
Recent political and industry debate has only reinforced this. From discussions at All-Energy 2026 through to the proposals outlined within the King’s Speech around an Energy Independence Bill, it’s clear that energy security needs to be at the centre of national economic policy. Simultaneously, increasingly polarised debate surrounding the future of the North Sea continues to create uncertainty across investors, operators and the wider supply chain.
This is particularly important in an industry where investment horizons are measured not in months, but often decades.
Increasingly, the concern being expressed across industry is not about the principle of transition itself, but about the risk of creating policy imbalance - where the pace of decline in existing domestic energy capability materially outstrips the pace at which replacement industries, infrastructure and investment are realistically able to scale.
The survey also reinforces the extent to which the wider supply chain continues to face significant pressure. Larger operators may retain relatively strong balance sheets, but many SME and mid-market businesses are operating within a far more challenging environment. Rising employment costs, inflationary pressures, financing costs and uncertain project pipelines are combining to create increasing strain across parts of the supply chain which have historically formed the backbone of the North-east economy.
Despite softer business confidence in certain segments, businesses continue to also report shortages of experienced technical, engineering and professional personnel. The transition agenda itself is adding further complexity, as companies seek to retain existing capability while simultaneously building new expertise in emerging technologies and markets.
The North-east of Scotland possesses decades of globally recognised expertise in offshore engineering, project delivery, subsea capability and large-scale energy infrastructure. These are not legacy skills with diminishing relevance. They are precisely the capabilities required to support successful energy transition projects both domestically and internationally.
There remains enormous potential for the region to play a leading role in the next chapter of the global energy system. But achieving that potential requires realism alongside ambition. Transition technologies and markets will continue to develop, but many remain commercially immature or heavily dependent upon policy support and investment confidence. A successful transition therefore requires balance: maintaining energy security, economic competitiveness and industrial capability while scaling lower-carbon solutions at a pace the economy and infrastructure can realistically support.
Perhaps the strongest message emerging from the sector is therefore the need for energy policy to sit above short-term political cycles. Major capital allocation decisions across oil and gas, offshore wind, CCS, hydrogen, electrification and grid infrastructure are not just measured over electoral terms. Stable, pragmatic and investable policy frameworks remain essential if the UK is to attract long-term investment, retain critical skills and deliver a transition which is both economically and operationally sustainable.
Against this backdrop, the importance of constructive dialogue between industry and policymakers has never been greater. Too often, public debate surrounding energy policy becomes polarised between competing extremes. In reality, most businesses operate from a far more pragmatic position.
The survey demonstrates that most do not view the future through the lens of “either/or”. The overwhelming majority recognise the need to accelerate lower-carbon technologies and support decarbonisation. Equally, they also recognise the continuing importance of domestic oil and gas production, energy affordability, industrial competitiveness and national resilience during what will inevitably be a multi-decade transition.
What businesses are consistently seeking is not special treatment or protection from change. Rather, they are seeking stable policy frameworks, long-term visibility and a transition strategy grounded in commercial and operational reality. Above all, they want confidence that the UK remains committed to remaining an attractive place to invest, innovate and build long-term energy capability.
The North-east has repeatedly demonstrated resilience, adaptability and leadership through periods of enormous industrial change, and can do so again. But rather than on just aspiration, a successful transition will be measured tangibly by whether we retain jobs, skills, investment, industrial capacity and energy security while building the lower-carbon economy of the future.
The energy transition remains one of the defining economic and industrial challenges of our time. Ensuring it is delivered in a way which supports both environmental ambition and economic resilience will be critical to the region and wider nation.
The North-east is ready and retains many of the capabilities required to support that future successfully. However, confidence is far harder to rebuild than maintain and without the stability and support that the sector craves, it risks losing it entirely.