Government sets out plan to manage existing North Sea oil and gas fields, protect jobs and grow clean energy industries.
UK government sets out world-leading North Sea Future Plan to build a prosperous and sustainable future for the North Sea.
New measures will implement government's manifesto commitments to manage existing oil and gas fields for their lifespan and not to issue new licences to explore new fields.
Government delivers on promise of plan for North Sea workers and unions to protect existing jobs and deliver the next generation of good jobs in sectors such as clean energy, advanced manufacturing, and defence.
The North Sea - its communities, workers, businesses and supply chains - will be at the heart of Britain's clean energy and industrial future as the UK government has today (26 November) published a landmark plan to protect existing jobs and deliver the next generation of good, new jobs.
The North Sea will continue to power Britain for many decades to come, but declining oil and gas reserves over last 20 years has seen more than 70,000 jobs lost in the last decade and left an urgent need to act now to secure its long-term future.
After years of inaction, the government is charting a new course for the North Sea, providing a global blueprint for a fair, managed and prosperous transition to future proof the sector. The new North Sea Future Plan, published today, sets a clear path to grow clean energy industries, support the management of existing oil and gas fields for their lifespan, and help North Sea workers and communities make the transition.
The plan implements the government's manifesto commitments to manage existing fields for the entirety of their lifespan, and to not issue new licences to explore new oil and gas fields. This puts the UK at the forefront of global efforts to tackle the climate crisis, reflecting the science of new fossil fuel exploration being incompatible with limiting warming to 1.5C.
As part of this, the government will introduce new Transitional Energy Certificates which will enable limited oil and gas production on or near to existing fields - so long as this additional production does not require new exploration and is already part of or links back to existing fields and infrastructure, and is necessary for a managed, orderly and prosperous transition.
Following extensive consultation with workers and unions, the government will also establish the North Sea Jobs Service - a world-leading national employment programme offering tailored end-to-end support for the current workforce seeking new opportunities in growing industries across the government's industrial strategy sectors, including clean energy, defence, and advanced manufacturing.
This service will provide support in every step of a worker's career journey - from clarity on future roles, to training and securing an offer for a good job. It builds on the expansion of the Energy Skills Passport to new roles and sectors, and up to £20 million funding from the UK and Scottish Governments, following demand for the Aberdeen skills pilot to help oil and gas workers retrain.
Energy Secretary Ed Miliband said:
The North Sea's workers and communities have helped power our country and our world for decades. This is our plan to ensure they continue to do so for many decades to come.
This is a world-leading plan with workers, unions, businesses, and communities at its heart, and implements in full the government's manifesto commitments. It is a plan which will ensure that the North Sea is an energy powerhouse throughout the twenty first century.
The government will also launch a new minister-led delivery board of experts from across the industry and trade unions, who will meet regularly to oversee the progress, coordination and long-term planning of the North Sea's industrial transition.
The North Sea Future Plan is centred around the following three areas:
Growing clean energy industries
the North Sea is Britain's greatest asset in the government's mission to become a clean energy superpower, which has galvanised over £62 billion of private investment across Britain since July 2024
it comes alongside the most significant programme of government investment in homegrown clean energy in British history - with £63 billion in government funding over this Parliament confirmed at the Spending Review earlier this year
a new five-year plan, announced today, will help supply chain companies to plan ahead for a pipeline of projects across the North Sea
the government's modern Industrial Strategy, announced earlier this year , will unlock billions in investment and support 1.1 million new well-paid jobs over the next decade. This includes high growth sectors where the skills and expertise of oil and gas workers are in demand - including advanced manufacturing, defence and construction
Support the management of existing oil and gas fields for their lifespan
ban on new licences will end new exploration for offshore oil and gas fields. It will also mean an end to new onshore licences in England, helping to meet the government's commitment to end fracking
new Transitional Energy Certificates will enable limited oil and gas production in areas that are already part of an existing field, or in areas adjacent to already licensed fields, linked via a tieback - to help ensure they remain economically viable and are managed for the entirety of their lifespan. Developers will not be permitted to explore for oil and gas at these new sites
changes to the North Sea Transition Authority's objectives and powers to reflect the changing nature of the North Sea basin. The regulator will balance decisions against three primary objectives that build on its existing role - to maximise societal economic value, support the Energy Secretary in meeting net zero goals, and consider the long-term benefits of the transition for North Sea workers, communities and supply chains
Help North Sea workers and communities make the transition
the new North Sea Jobs Service will launch next year to offer end-to-end career support for oil and gas workers to take up new opportunities in growing Industrial Strategy sectors, from clean energy to defence, and advanced manufacturing. It builds on a similar programme run by the Ministry of Defence to support armed forces leavers into new roles
upskilling workers - the North Sea Jobs Service will link up with workforce initiatives announced last month in the Clean Energy Jobs Plan - including tailored training backed by up to £20 million from UK and Scottish Governments, and the Energy Skills Passport that supports workers to move between sectors, and is set to expand to nuclear and networks, in addition to offshore wind
a new Fair Work Charter between offshore wind developers and trade unions to ensure that companies benefiting from public funding provide decent wages and strong workplace rights
Stuart Payne, Chief Executive of the North Sea Transition Authority said:
This plan provides clarity and direction for the energy industry, as well as for the North Sea Transition Authority as an organisation.
We will work together with government and industry to ensure that we continue to drive forward the transition as an enabling regulator, delivering the next chapter for the North Sea and all who rely on it.
Notes
The government is actively scaling up Britain's clean energy industries and wider industrial supply chains. This includes:
- £9.4 billion government backing for carbon capture, usage and storage projects, over this Parliament - including development funding for Acorn and Viking projects in Scotland and the Humber.
- The government and Great British Energy have joined forces with industry and The Crown Estate to invest £1 billion in offshore wind supply chains, announced earlier this year .
- A commitment of at least £5.8 billion from the National Wealth Fund over this Parliament to invest in ports, hydrogen, carbon capture, gigafactories, and green steel, as announced earlier this year .
- Over £500 million government funding in hydrogen infrastructure, which will support the development of the first regional hydrogen network to be in operation from 2031.
Over £2 billion in government funding allocated to eleven hydrogen projects last year. A further 27 hydrogen projects have progressed to the next stage of the second hydrogen allocation round - as announced earlier this year .
The North Sea Future consultation response is available here .
On 1 October the Energy Secretary confirmed plans to bring forward legislation to end new onshore oil and gas licensing in England, including new licences that could be used for high volume hydraulic fracturing for shale gas extraction ("fracking").
The government published new environmental impact assessment guidance in June which allowed offshore developers to restart applications for consent to extract oil and gas in already-licensed fields - a process which had been paused since the Finch Supreme Court judgment.
Data from Offshore Energies UK shows that over 70,000 jobs were lost in the North Sea oil and gas sector between 2016 and 2023.
In Scotland, any expansion of the Energy Skills Passport to nuclear would only be in relation to nuclear decommissioning.
The government's Clean Energy Jobs Plan confirmed that Scotland will benefit from up to 60,000 clean energy jobs by 2030, a 40,000 increase from 2023.
- DESNZ analysis of Skills England data finds that oil and gas workers' skills will be in high demand in critical sectors including clean power, construction, defence, advanced manufacturing, and life sciences, with around 70% of oil and gas workers already employed in occupations identified as a priority for these sectors. North Sea oil and gas production is in natural decline, with a 75% reduction in production occurring between 1999 and 2024.
