In the U.K., many places still rely on oil and gas jobs

At the end of September, the U.K.’s last remaining coal power plant, Ratcliffe-on-Soar in Nottinghamshire, will be retired. The closure of the plant should—and will—be celebrated by environmentalists, as the move away from coal has made Britain’s electricity much cleaner over the past decade. It is on this basis that the UK claims climate leadership.

In the 1950s, coal provided the overwhelming majority of British energy, and as recently as 2012 it still generated 40%. By 2022, it was less than 2%. In a month’s time, it will be zero.

Phasing out coal was a brutal and profound process. Organised labour was decimated, entire regions were forced into decline, and communities were left with sustained economic, social and health problems. The towering ghosts of power stations like Ratcliffe-on-Soar will haunt Britain’s ongoing effort to phase out North Sea oil and gas and replace it with clean energy.

And we are witnessing this haunting in real-time. After the Labour government announced its plans to end new licenses for oil and gas in British waters—necessary to meet the Paris Agreement—workers and trade unions feared history would repeat itself in terms of job losses and blighted communities.

The general secretary of Unite, Sharon Graham, noted that without a more thorough plan, the policy risked creating “the coal miners of our generation.” A recent motion at the Trades Union Congress (TUC) gathering in Brighton called for no ban on oil and gas licensing before a fully funded jobs guarantee is agreed. The motion narrowly passed.

Workers and unions are demanding a “just transition” from polluting industries into the clean industries of the future. But to achieve this, the U.K. government must learn from what happened with coal.

Many places still rely on oil and gas jobs

Although oil and gas are not as embedded throughout British life as coal once was, there are many settlements and larger areas still dependent on energy jobs. Grangemouth in central Scotland is a good example. In November 2023, the owner, Petroineos, announced plans to close the town’s oil refinery in 2025, bringing a century of production to an end at the cost of 400 jobs.

Even if the U.K. government did issue new oil and gas licences, the North Sea faces structural decline. Production peaked around the turn of the century. Since 2014, as many as 200,000 jobs have been lost either offshore or along the supply chain onshore.

From gas to wind?

Planning for the end of fossil fuels is therefore an urgent endeavour. The dominant strategy for protecting skilled jobs is to transition workers into the industries set to replace North Sea production: wind energy and other low-carbon technologies.

However, though Britain has developed a large wind power sector, it remains a major importer of turbines. Domestic manufacturing makes only a small contribution, and developers are not required to use British-made turbines or other parts, despite the jobs this would create.

This has left Grangemouth workers discontented. When one of us (Ewan Gibbs) and Riyoko Shibe interviewed young refinery workers at Grangemouth earlier this year, many commented that there were relatively few jobs in renewables. When jobs were visible on LinkedIn and comparable job sites, one told us, “You’ll see there’s a big difference in terms and conditions.”

In its current form, the U.K. wind industry will find it hard to provide the types of secure ongoing employment that oil and gas historically has. Most jobs are in the construction and maintenance of wind farms, with the latter threatened by automation. Without public investment and a targeted industrial policy, Britain will remain a net importer of wind technology, and the phasing out of North Sea oil and gas will prove costly in job terms.

More investment needed

Britain’s lack of state intervention is not the norm. After all, more than half of British wind farms are state-owned, though less than 1% are owned by the U.K. government. Swedish, Norwegian, French, Irish and German state-owned entities are major players, but the biggest is Denmark’s Ørsted, a former oil company turned renewables giant which is mostly state-owned. In the U.K.’s most recent offshore wind auction, 70% of the projects were awarded to Ørsted.

The newly launched Great British Energy could give the state a foothold in the North Sea once more. This publicly owned company plans to focus on domestic manufacturing and will invest in ports and other infrastructures to “unlock strategic bottlenecks.”

But if such projects are to be meaningfully incorporated into a just transition, they will need to offer continuity and security to oil and gas workers. As one Grangemouth worker put it, referring to his colleagues facing the choice of either remaining unemployed locally or relocating to use their skills:

They’re moving to the Middle East, they’re moving to North East Scotland. They’re moving offshore, they’re moving to the Shetlands, and therefore it’s not a just transition, in my view, if we’re moving to these jobs.

They’re moving to the Middle East, they’re moving to North East Scotland. They’re moving offshore, they’re moving to the Shetlands, and therefore it’s not a just transition, in my view, if we’re moving to these jobs.

Another worker highlighted the risks that Grangemouth could join the coalfields in becoming “stranded” communities:

We’ve got a community that’s been built round the site, we’ve got skills and we’ve got people that work there, we’ve got the infrastructure there—why should we not have these jobs when the time comes to move to these industries? Why can we not have it at Grangemouth?

We’ve got a community that’s been built round the site, we’ve got skills and we’ve got people that work there, we’ve got the infrastructure there—why should we not have these jobs when the time comes to move to these industries? Why can we not have it at Grangemouth?

Britain’s push to phase out oil and gas is urgent and necessary, but it cannot follow the same trajectory as Britain’s exit from coal—lessons must be learned. The opportunities presented by the transition away from fossil fuels will only be fully realized if workers are at its centre.

Freddie Daley is a research associate at the Centre for Global Political Economy at the University of Sussex.

Ewan Gibbs is a lecturer in global inequalities at the University of Glasgow.

This article is republished from The Conversation under a Creative Commons license. Read the original article.