Exclusive:Scotland 'has lost three' North Sea oil, gas jobs for every one created in clean energy in 'devastating' hit
Report calls for decisive action to fuel energy transition as Chinese firm piles pressure on UK government for huge wind turbine factory in the Highlands
Scotland has lost three oil and gas jobs for every one clean energy job created over the past decade, new research has shown, with the impact described as “devastating”.
A report published by the think-tank Future Economy Scotland (FES) warns the country risks repeating the mistakes of past deindustrialisation.
The research said total employment supported by North Sea oil and gas had fallen by a third (32 per cent) since 2014, amounting to 34,000 job losses.
The findings come as a Chinese company piles pressure on the UK government to approving its controversial plans for a massive wind turbine factory in Scotland.
Ming Yang unveiled details of its proposals for a project earmarked for Ardersier port in the Highlands, which would involve investment of up to £1.5 billion and create as many as 1,500 jobs.
But the UK government has not yet given the company permission to move ahead with the plans and a source told The Scotsman ministers would not be “rushed into anything when there are several factors, including national security, to consider”.
FES said just 6,000 new direct and supply chain jobs in clean energy have been created since 2014, compared to 18,000 equivalent oil and gas jobs lost.
And forecasts show oil and gas jobs could decline by another 20 to 50 per cent by 2030, threatening tens of thousands more roles, the think-tank said.
The new report calls for pro-active policy decisions to "fully seize the economic opportunities offered by decarbonisation". It argues the energy transition could create up to 40,000 more jobs than will be lost by 2030 if decisive action is taken.
The report is published today as the SNP gathers in Aberdeen for the party's annual conference.
Juan-Pedro Castro, an economist at FES, said: “The North Sea is a maturing basin – reserves are running out, and extraction is increasingly uneconomic.
"While critics like to blame net zero for the industry’s decline, the reality has more to do with geology and economics. Like it or not, Scotland must now prepare for life beyond fossil fuels.
“The good news is that Scotland has some of the best renewable energy resources anywhere in Europe. But so far, job creation has fallen far short of expectations and Scotland’s potential.
"Over the past decade, Scotland has lost around three oil and gas jobs for every one created in clean energy.
"Our research shows that, with the right ambition and policy support, the net zero transition can create more energy jobs than will be lost. But to make that happen, we need far more pro-active policies to create green jobs, retrain workers, and guarantee a just transition for the workers and communities.”
The report recommends the Scottish Government develops a clear transition roadmap while implementing an ambitious green industrial strategy.
It also calls for expanded retraining programmes and a boost to college funding, as well as improved pay and conditions in green sectors.
Scottish Conservative energy spokesman Douglas Lumsden said: “This grim report exposes the devastating impact on jobs in the oil and gas sector due to the SNP and Labour’s hostility towards it.
“Everyone wants action on an energy transition, but reckless policies from the UK and Scottish governments mean a demolition of the oil and gas industry is happening at a rapid pace.
“While we still rely on oil and gas, it’s just common sense we should be producing it here in Scotland.”
He added: “Our oil and gas sector stands at a cliff-edge, but the Scottish Conservatives will continue to fight their corner and demand an affordable transition that protects jobs and brings down bills for consumers.”
A Scottish Government spokesperson said: “Renewable energy is already boosting Scotland’s economy and will provide many more jobs for the communities across the country as well as wider infrastructure benefits.
“We are also very clear in our support for a just transition for Scotland’s valued oil and gas sector, recognising the maturity of the North Sea basin and in line with our climate change commitments and energy security.
“Workers are at the heart of the transition, and we are supporting them with the powers available to us. Through initiatives such as the Just Transition Fund and the Energy Transition Fund, we have already invested £120 million to support the North East’s transition to net zero helping to create green jobs, support innovation and secure the highly skilled workforce of the future.”
Under the first of three phases, Ming Yang said it would invest up to £750 million in an advanced manufacturing facility – with the first production taking place by late 2028.
Latter phases would see the facility expand and create an “offshore wind industry ecosystem” around the hub.
Ming Yang announced its plans on Friday following discussions with the Scottish and UK governments over the past two years, and just days after a huge global investment summit in Edinburgh attended by Ming Yang UK chief executive Aman Wang.
The company has been waiting since the spring for UK government approval for them to enter the British renewables supply chain, amid national security concerns.
Ming Yang signed a memorandum of understanding with the UK government in 2021 but has not yet received permission to proceed.
A UK government source told The Scotsman the company “seems to be trying to pre-empt us”, adding that “we’re not being rushed into anything when there are several factors, including national security, to consider”.
Ming Yang is the only company that can produce floating wind turbines for the European market, with 60 per cent of the ScotWind contract for floating wind - making up around 15GW of energy.
First Minister John Swinney has previously said that floating offshore wind is “central to my vision for Scotland’s future as a modern and dynamic nation”.
Ardersier, near Inverness, is one of the “green freeport” initiatives which offer tax and customs incentives to encourage investment.
Last month Ming Yang and Octopus Energy announced they would be in partnership to develop new wind projects.
Zhang Chuanwei, founder and chairman of the Ming Yang group, said: We are excited by the prospect of investing in the UK and look forward to finalising our investment decision.”
Mr Wang said: “We firmly believe that by moving forward with our plans to create jobs, skills and a supply chain in the UK, we can make this country the global hub for offshore wind technology.
“We fully support the Government’s mission to become a clean energy superpower, and I’m confident that once the plans are approved we can make a valued contribution to this goal.”
A UK government spokesperson said: “This is one of a number of companies that wants to invest in the UK. Any decisions made will be consistent with our national security.”
In November last year, Conservative MP Nick Timothy asked energy minister Michael Shanks about Ming Yang’s plans to invest in Scotland, saying the Government should rule out investment from “hostile states”.
He said Ming Yang “benefits from huge subsidies in China but there are serious questions about energy security and national security”.
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