An energy industry leader today warned Sir Keir Starmer against polarising the debate by pitching renewables against fossil fuels, saying time was running out to protect homegrown production.
David Whitehouse, chief executive of Offshore Energies UK said the UK was failing to invest quick enough in clean energy as the country becomes more reliant on imports to meet energy demand.
“We are again a country relying on record levels of imported energy, slow economic growth, concerns over jobs. But again, managed well, the North Sea is an important part of the solution,” he told the OEUK conference.
“This should not be a choice between tackling our emissions versus economic growth. We can deliver both.
“This should not be a choice of renewable energy versus domestic oil and gas. We need both.
“But let me be clear…this is a choice between homegrown energy versus imports. This is a choice between backing our workforce, our supply chain companies, value in our economy over importing the solution. It is the choice between a homegrown dividend over a dependency drain.”
Mr Whitehouse said that the UK relies on 75% on oil and gas for its energy but is not seeing the investment needed in the domestic oil and gas sector.
“We are looking at a record low level of rig activity. And job losses announced,” he said.
“Although there have been important announcements from government, we are not seeing renewable projects being advanced at the speed originally envisaged.”
Last month Orsted announced that the huge Hornsea 4 project would be discontinued in its current form. Mr Whitehouse said this is putting speed of the UK’s critical floating wind ambition under question.
“We are seeing an accelerated decline in one industry and slower build out in another. That risks undermining our supply chain companies who invest across the energy sector. That is economically harmful for industrial communities across the UK.
“Two things are clear. One: People see the opportunity. The opportunity to revitalise the industrial UK underpinned by homegrown energy production.
“Two: We risk squandering that opportunity through a polarised approach. We cannot let that happen.”
Mr Whitehouse welcomed the Prime Minister’s comments that the industrial strategy – announced this week – marks a turning point for Britain’s economy.
However, he said: “Continued domestic production. A competitive tax regime. Certainty for our developers. Recognition of the importance of the work that we do. That is the turning point we need.
“To our Government – I ask you to continue to engage. listen to our sector. listen and act. “
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