The leading trade body for the UK's offshore energy industry says today that skills shortages could put the transition to cleaner energies at risk.

Offshore Energies UK (OEUK) also warns of the impact of "continued uncertainty" on tax for North Sea oil and gas producers.

Today sees the launch of the organisation's annual workforce-insight report.

OEUK says that retaining and recruiting the best people is critical to securing the country's energy supply.

Katy Heidenreich, the body's UK supply chain and people director, commented: "The UK is entering a decade of delivery in homegrown energy projects.

"It could unlock a new generation of exciting jobs and careers in manufacturing heartlands and communities across the country.

Premature end?

"Our report shows that competition for talent and continued uncertainty on taxes could spell a premature end for the UK's clean-energy ambitions.

"We need urgent action from governments to give confidence to the sector, so we can recruit and retain the talented needed.

"As the national recovery from the pandemic takes shape and the energy-security challenge intensifies, competition for skilled workers is increasing.

"The shortage is being made worse by competition from major national infrastructure projects.

"Over 200,000 people supported the UK's offshore energy industry last year.

"Many of our members are telling us they are facing real skills shortages in delivering activity needed to ensure energy security for the UK.

Developing accurate picture

"OEUK is currently working with our members to develop an accurate picture of the nature of these gaps, identify the reasons for them and recommend an action plan that we will share with government."

Publication of the workforce-insight study comes at a worrying time for the North Sea oil and gas sector.

UK Chancellor Jeremy Hunt launched a fresh cash grab on offshore producers in last month's Budget, leading to fears that new projects in British waters could be delayed or even cancelled.

Pressure is mounting on him for a rethink on the severity of his tax plans.

He is hiking the energy profits levy (EPL) by another 10% to 35% - bringing the overall tax rate from January to an eye-watering 75%.

EPL extended

The chancellor has also extended the lifespan of the EPL until March 2028 from the previous date at the end of 2025.

The EPL is now expected to raise a total of £40billion - double the previous figure of £20billion. The total tax take from producers operators in British waters in the next six years will hit a staggering £80billion.

Tory MPs are now warning Mr Hunt that the windfall levy must be watered down to avoid industry collapse.

He has been told that the EPL is "too blunt an instrument" in its current form and risks "destroying" North Sea production altogether.

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