A flagship survey of the North Sea energy sector is set to examine whether enough is being done by policymakers to restore investor confidence as the UK accelerates towards net zero.
The launch of the survey comes at a key moment for the sector, as the Prime Minister Rishi Sunak – the architect of the windfall tax while Chancellor of the Exchequer – has sought to boost inward investment with a series of policy interventions in recent weeks.
As well as financial support for the Acorn carbon capture project in Aberdeenshire, the UK Government has also signalled strong backing for future oil and gas development on the UK Continental Shelf.
However, with profits continuing to be eroded by the Energy Profits Levy (EPL), many firms appear to be pausing investment to see what the fiscal environment will look like after the next General Election, and beyond the EPL’s 2028 sunset date.
Amid this backdrop, Aberdeen & Grampian Chamber of Commerce has launched the 38th
edition of its energy sector survey, which has been tracking industry trends since 2004.
Energy Transition 38 – which is being delivered in partnership with KPMG
and Energy Transition Zone Ltd – will examine current confidence levels in the sector, as well as investment in the energy transition and access to skills.
The survey goes live today and runs until September 29. All survey responses are completely confidential and will not be attributed to individuals or their companies in the final report.
Russell Borthwick, chief executive at Aberdeen & Grampian Chamber of Commerce, said: “As the energy transition gathers pace, many of our members in the sector are being faced with more questions than answers.
“Have any of the recent positive announcements around the sector and the North-east region boosted confidence?
“Has the Prime Minister won over the sector, or does the current 75% tax on profits remain a major barrier to investment in the North Sea?
“And are companies still pushing ahead preparing to deliver more non-oil and gas activity, or is lack of visibility and return on investment slowing this transition?
“This report has become established as a vital source of industry intelligence for businesses, policy makers and the media – and the industry feedback will be instrumental in ensuring that this region’s voice is heard.”
Robert Aitken, director at KPMG UK in Aberdeen, said: “This is a pivotal time for the energy sector, and I’ll be intrigued to see if there has been a shift in sentiment in light of recent political announcements.
“Front of mind will be any disparity in confidence levels between international and domestic operations, and whether businesses have considered the next iteration of their net zero strategies.
“I encourage everyone to respond to the survey, helping to provide meaningful insight and a platform for the sector to provide its view during this time of change.”
Maggie McGinlay, chief executive at Energy Transition Zone Ltd, said: “Owing to our world-class oil and gas industry, the North-east of Scotland has the critical mass in skills, experience and financial capital to be a globally recognised energy cluster focussed on the delivery of net zero.
“We are proud to continue our support for the Energy Transition Survey which provides crucial insight into the barriers to be overcome and opportunities to be maximised if we are to fully realise this ambition.”
The survey is being conducted by AGCC’s in-house research agency, The Research Chamber, and the results will be shared at a breakfast event on November 14 at the Aberdeen Altens Hotel.
Click here to take part in the survey.