£100 billion of private sector investment needed to safeguard UK energy security
A new report says energy spend this decade could reach £200 billion
The UK must become an "irresistible" place to do energy business, according to industry leaders after the launch of Offshore Energies UK's (OEUK) 2023 Economic Report.
The report reveals that safeguarding the UK's energy security will require up to £100 billion in order to deliver a number of key projects.
Total energy spend could reach double that this decade (£200 billion) between oil and gas, offshore wind, carbon capture and storage and low carbon hydrogen.
However, the report adds that half of that - £100 billion - is still waiting on final investment decisions being made from businesses that need renewed certainty to sign off.
OEUK argues that a stable and globally competitive tax regime, policy support and improved planning and regulatory timelines are "critical" to unlocking the funding.
More collaboration required
The report sets out the actions the trade association argues policymakers must take in partnership with business to achieve this level of investment and tackle the energy challenges facing the nation and its households.
The body is calling for pragmatic policy across all political parties ahead of the next general election to safeguard energy security and the homegrown jobs and supply chains needed to build a low carbon future in the UK.
David Whitehouse, Chief Executive of OEUK, said: "Parliaments may thrive on opposition and argument, but we know big engineering projects only succeed through collaboration.
"The transition to net zero will be the biggest engineering project this country has ever seen. We need consensus to support the very industries and workers whose skills are vital for building our energy future.
"In recent months we have felt the direct impact of underinvestment in homegrown energy on job security for our workers, the competitiveness of our firms internationally and our future energy bills.
"Our report shows that with the right frameworks in place, this industry can make the long-term investments to help the UK tackle these challenges head-on.
"The UK mustn't just become a good place to do energy business, it must become irresistible.
"Our Economic Report shows that as the global race for energy investment accelerates, the UK must compete by making the most of its diverse homegrown industry, from oil and gas to offshore wind, hydrogen and carbon capture.
"Globally, this is the lesson other countries have learnt. We must not get left behind."
Scottish Government minister for energy Gillian Martin MSP said: "OEUK's Economic Report 2023 underlines the vital importance of our energy sector.
"As Scotland transitions to a net zero economy, we must simultaneously focus on meeting our energy security needs, reducing emissions and - critically - ensuring a just transition for our oil and gas workforce as North Sea resources decline.
"The Scottish Government is wholly focused on unleashing the economic and energy potential of Scotland's renewables sector while investing £500 million in a Just Transition Fund for Aberdeen and the North East to ensure that we fully capitalise on the enormous benefits our energy transition offers."