The inquiry follows an initial October 29, 2025 evidence session on the role of the UK’s refinery industry in the energy transition and will assess the effectiveness of policies such as the British Jobs Bonus and Great British Energy in delivering a just transition.
According to Offshore Energies UK’s 2024 Economy & People Report, the offshore energy sector directly and indirectly supports 154,000 jobs, with oil and gas responsible for around 120,000 of those. When hospitality, retail, and transport roles tied to the sector are included, oil and gas supports more than 206,000 jobs and contributes $33 billion (£25 billion) to the UK’s annual gross value added (GVA).
The report also notes a 90% skills overlap between oil and gas and low-carbon industries such as offshore wind, carbon capture and storage (CCS), and hydrogen—suggesting redeployment can be achieved with the right planning.
“Our people and companies are ready to deliver a homegrown energy transition—if the investment conditions are right,” said Dave Whitehouse, Chief Executive of Offshore Energies UK.
Industry leaders and MPs have highlighted the impact of the Energy Profits Levy (EPL), which adds 38% on top of existing ring-fence and supplementary charges, bringing the headline tax rate to 78% on upstream oil and gas profits. The Committee echoed the Scottish Affairs Committee’s earlier conclusion that uncertainty beyond 2030 is discouraging investment in the North Sea.
OEUK warns that unless investment conditions improve, offshore energy employment could fall to 130,000 jobs by 2030, while a stable investment environment could grow the total to 225,000 jobs—a nearly 50% increase.
Witnesses at the October session also urged the inclusion of UK refineries within the Carbon Border Adjustment Mechanism (CBAM) to ensure competitiveness against imported fuels. Currently, the UK CBAM—scheduled to begin in 2027—covers aluminium, cement, ceramics, fertiliser, glass, hydrogen, and iron and steel, but not petroleum products.
Elizabeth de Jong of Fuels Industry UK warned that “without rapid action on carbon-leakage policy, the country faces further refinery closures.”
The Committee is drawing on lessons from the closure of the UK’s final coal power plant, Ratcliffe-on-Soar, where union collaboration ensured nearly full redeployment of staff. The experience underscores the value of early workforce planning—a priority in developing a credible North Sea Just Transition Plan.
Another focus of the inquiry is how to remove gas from home heating. The government’s Clean Heat Market Mechanism—implemented on April 1, 2025—requires boiler manufacturers to sell a rising share of heat pumps each year or face penalties. It complements the expanded Boiler Upgrade Scheme, but experts warn the rollout pace remains insufficient to meet 2035 decarbonization goals.
Offshore Energies UK projects $600 billion (£450 billion) in energy investment over the next 15 years, with over 70% directed toward low-carbon projects such as wind, CCS, and hydrogen. However, without fiscal stability and supply chain investment, the UK risks what OEUK calls an “imported energy transition”—where value, skills, and emissions reductions are realized abroad rather than at home.
