Source · Select Committees · Scottish Affairs Committee
4th Report - The future of Scotland’s oil and gas industry
Scottish Affairs Committee
HC 459
Published 24 October 2025
Recommendations
5
Accepted
Set out plans to increase proportion of UK-based supply chains for clean energy generators.
Recommendation
We recognise that maximising economic return from clean energy investments requires supporting and expanding UK-based supply chains. (Conclusion, Paragraph 56) The Government should set out how it intends to increase the proportion of UK-based supply chains used by clean energy …
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Government Response Summary
The government agrees with the recommendation and outlines four new policy interventions from its North Sea Future Plan to support and expand UK-based supply chains. These include establishing a North Sea Future Board, developing guidance, a Basin Wide Plan, and leveraging GBE's £1bn Supply Chain Fund.
Scotland Office
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15
Accepted
Ensure clear communication campaigns for oil and gas workers on energy transition job opportunities.
Recommendation
There has been a failure of communication from consecutive governments to oil and gas workers about the transition and what they need to do to prepare and benefit from it. Government action is required to ensure the visibility and promotion …
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Government Response Summary
The government outlined several specific actions to improve the visibility and promotion of clean energy jobs, including a UK-wide awareness campaign, a deep dive into priority occupations, the Destination Nuclear campaign with a careers portal, and recent clean energy jobs fairs.
Scotland Office
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16
Accepted
Conduct a communications campaign informing oil and gas workers about energy transition job opportunities.
Recommendation
As part of its North Sea transition plan, we recommend that the Government conduct a communications campaign about the scale of the energy transition and the employment opportunities available, directed at both oil and gas workers and new entrants to …
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Government Response Summary
The government agrees, committing to lead a UK-wide industry-led awareness and attraction campaign for clean energy jobs, launching next year. A strong communications approach will be embedded within the North Sea programme, with the North Sea Jobs Service providing job boards, apps, and job-matching to help workers transition.
Scotland Office
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18
Accepted
Establish principles for a just industrial transition drawing on lessons from the Grangemouth case.
Recommendation
In its response to this report, the Government should outline what has been learned from this case and what can be done to ensure that comparable industrial transitions will be better managed in future. Having consulted trade unions and communities …
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Government Response Summary
The government agrees with the recommendation, affirming its commitment to a fair and equitable transition for workers and communities. It will commence a "Future of Fuels programme" and launch a call for evidence to inform the UK's long-term strategy for the downstream oil sector, which will guide future transition management and support jobs and communities.
Scotland Office
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Conclusions (4)
8
Conclusion
Accepted
We welcome the Government’s publication of updated guidance on environmental impact assessments for new oil and gas fields, providing greater certainty to the sector. Given that each application will be considered on a case-by-case basis and the Government has not shared how factors will be weighted in its assessment, transparency …
Government Response Summary
The government explains that each project is considered on its merits, with the Secretary of State balancing environmental effects against wider national benefits and objectives. It asserts that the existing EIA process already provides transparency through public notice and published decision reasons, without committing to new transparency measures.
11
Conclusion
Accepted
A coherent transition plan for the North Sea is urgently needed. While we recognise that the Government has been in power for 15 months, plans are not yet in place and the transition is already well underway. The Government’s consultation, Building the North Sea’s Energy Future, which commits to producing …
Government Response Summary
The government acknowledges the urgent need for a coherent transition plan and confirms the publication of its 'North Sea Future Plan' in November, further committing to establish a minister-led delivery board in early 2026 to oversee progress.
17
Conclusion
Accepted
The Grangemouth case is the energy transition’s canary in a coalmine. It has illustrated the need for Government’s active stewardship in the energy transition. Petroineos advised the Committee that the UK and Scottish governments were aware of its plans to cease operations at the refinery five years ago. Both the …
Government Response Summary
The government agreed with the committee's conclusions regarding past failures at Grangemouth and detailed its subsequent actions, including a £100 million support package, a training guarantee, the Project Willow feasibility study, and a £14.5 million seed fund to transform the site.
19
Conclusion
Accepted
Continued momentum on the future of Grangemouth is vital. Project Willow must not be left to gather dust while jobs are at stake. We welcome the Scottish Government’s £25 million Just Transition Fund and the UK Government’s commitment of £200 million in ringfenced National Wealth Fund funding to leverage private …
Government Response Summary
The government agrees on maintaining momentum for Grangemouth, announcing £14.5 million in funding and describing the due diligence process undertaken by investment agencies. They commit to understanding and providing necessary policy or regulatory support as projects emerge to unlock investment.