Two of Britain’s leading renewable energy figures have backed North Sea production as the cleanest way for the UK to get the oil and gas it requires.
Jurgen Maier, chairman of Great British Energy, said that “oil and gas is our foundation” and warned the basin is “haemorrhaging workers too fast and risks losing supply chains.” He urged closer collaboration between oil and gas and renewables to protect jobs.
“This isn’t about oil and gas or renewables; it’s about oil and gas and renewables,” he said. “We must create bridges to welcome companies and workers into the clean energy sector.”
Maier admitted to “feeling nervous” ahead of the Offshore Europe industry gathering last week, but said: “I know we are at a crossroads and understand the mood and anxiousness of the oil and gas community in Aberdeen.
"We can’t repeat [past transitions] here. And there is some good news, which is that this transition is lasting much longer, and unlike the transition from coal, this time there is an alternative; renewable energy.”
Meanwhile Greg Jackson, chief executive of Octopus Energy, said exploiting domestic reserves was cleaner than relying on imported liquefied natural gas (LNG).
Energy Secretary Ed Miliband banned the issuing of new drilling licences in British waters after Labour came to power last year. This has led to an increase in LNG imports - which carry four-times higher emissions - from countries such as the US and Qatar, as the government compensates for declining production from the North Sea.
Mr Jackson told the Telegraph: “When we’re shipping LNG, liquefied natural gas, around the world, it is a lot dirtier than using locally produced gas.
“So if we’re going to produce gas then I’ve got no problem in using local stuff.”
Mr Jackson stated that North Sea drilling would, in his view, not bring down bills, but said it would lower emissions.
He added: “British gas producers won’t be selling it any cheaper than the global market. But it is cleaner and it reduces the backlash against climate policy. I’ve got no problem with it.”
Both leaders - Mr Maier through GB Energy and Mr Jackson through Octopus - have been strong advocates of renewables, but their interventions highlight a growing recognition that North Sea oil and gas must continue to play a role during the transition.
Russell Borthwick, Chief Executive at Aberdeen & Grampian Chamber of Commerce, welcomed the remarks.
He said: “It’s encouraging to hear leading renewable energy voices recognising what industry has been saying for years – that the North Sea remains the UK’s cleanest and most secure source of oil and gas.
"Aberdeen has the skills, innovation and determination to drive both the transition and our continued energy security – but we need government to match that ambition with supportive policy, starting with the removal of the Energy Profits Levy and a more nuanced approach to new activity.”