Offshore Energies UK (OEUK) has issued a challenge to all candidates participating in the upcoming General Election on 4th July to show their support for British energy companies and their employees. OEUK released a manifesto entitled “Unleash our potential. Power our future”, urging candidates to back a transition towards homegrown energy.
The trade body, representing over 400 companies in the oil and gas, wind, hydrogen and carbon capture technology sectors, emphasized the importance of having stable, long-term policies to ensure UK firms can effectively compete for energy investment on a global scale. OEUK believes that over £200bn can be unlocked and invested in the energy sector this decade, but only if firms, skilled workers, and capital remain in the UK.
David Whitehouse, CEO of OEUK, pointed out that the offshore energy industry provides employment in almost every parliamentary constituency in the UK and called on candidates to support the sector and its workers throughout their campaign trails.
The manifesto calls for a homegrown energy transition that safeguards UK jobs and communities, while also promoting economic growth. Whitehouse stressed the significance of an integrated energy system that includes both oil and gas and renewable energy to ensure the country’s energy needs are met.
Moreover, OEUK has been critical of the government’s oil and gas windfall tax, which currently taxes oil and gas profits at 35% until March 2029. As the General Election approaches, both the Conservative government and the Labour Party have proposed changes to the tax rate.
Prime Minister Rishi Sunak has announced an early General Election in July, with all 650 parliamentary seats up for election. The Conservative government has recently made adjustments to its net zero strategy, while the Labour Party has expressed its intention to increase the windfall tax to 38% and establish a state-owned entity called Great British Energy for energy investments.
Despite the UK’s efforts to transition to renewable energy sources, the majority of primary energy consumed in 2022 still came from fossil fuels at 78.4%, though this is a decrease from the 87.2% recorded in 2012.
As the General Election draws near, the stance of candidates on energy policies and homegrown energy transition will undoubtedly play a pivotal role in shaping the future of the UK’s energy industry.