A crunch in energy industry firms’ ability to find the skills they need are a “significant threat,” Aberdeen business leaders have warned.
Aberdeen and Grampian Chamber of Commerce (AGCC) chief executive Russell Borthwick told guests at a business breakfast today firms’ confidence in finding the right skills had dropped by half in the past year.
He added: “This is a significant threat to the region and to the nation in realising our ambitions in becoming a global renewable energy hub.”
Mr Borthwick was outlining a key finding in the AGCC-KPMG Energy Transition survey, now in its 19th year.
According to the study, 55% of respondents in April 2022 were either “very” or “extremely” confident of finding oil and gas skills. A year on, that’s down to 30%.
Meanwhile confidence in finding renewable energy skills has halved from 34% to 17%.
Early retirement and staff leaving the sector are among the main drivers.
“An ageing workforce needs to be mitigated by improving the narrative and efforts to attract young people into the industry,” said Mr Borthwick.
He added: “There are some positive initiatives like the national energy skills accelerator and skills passport.
“But of course, the other side of the equation is we need to make sure the jobs are there for them to go into.”
Bellwether of ‘just’ transition
Net-zero Cabinet Secretary Mairi McAllan also spoke at the Douglas Hotel event, making the case for a “just” transition.
Ms McCallan said: “Fundamentally, the successful transition of the oil and gas industry to renewable energy, I think, will be the bellwether of a just transition in Scotland.
“We can’t wait until decline in the (North Sea) basin is acute. We have to act now – we have to act to seize the opportunities and mitigate what I absolutely acknowledge are a plethora of risks.”
Minister admits politicians have bridge-building work to do
The minister said the AGCC-KPMG report, in which respondents said no political party had the best policies in place for delivering the transition, showed more work is needed at both Holyrood and Westminster.
And she said she was “keenly aware” relations between business and the SNP has “not always been as strong as we would like it to be”.
Ms McCallan continued: “The report from the chamber demonstrates that both the UK and Scottish governments have to work to rebuild these relationships, and ensure that we are good partners to business.”
She also highlighted the work of the Scottish Government’s £500 million Just Transition Fund and its £75m Energy Transition fund to support initiatives including the proposed energy transition zone in Aberdeen.
And she urged UK policymakers to deliver greater funds for the supply chain to deliver the energy transition.
“We do have the skills, experience and natural resources to be a powerhouse of a green energy future and really mustn’t get left behind on that,” she added.
Conversation