New research from Offshore Energies UK (OEUK), the leading trade body for the UK’s integrating offshore energy industry, on the economic impact of the sector has revealed that oil and gas contributes £396m Gross Value Added (GVA) to the economy of Wales, providing jobs for more than 4,400 people.
These latest figures highlight the critical role that the oil and gas industry plays in Wales while underlining the need for a ‘just transition’ to safeguard the communities that rely on the sector for their livelihoods.
Oil and gas continues to meet some 75% of the UK’s energy needs. OEUK today said companies in Wales play a critical role in maintaining the country’s existing energy supplies while at the same time building the low carbon energy systems of the future.
The UK is entering into a transformational period of energy production and Wales will be critical in the transition, with the workforce’s skills and expertise proving fundamental in the drive to net zero. Wales has established itself as a leader in pioneering technologies that will play an important role in promoting a low carbon future for the UK.
The HyNet decarbonisation cluster, which operates in the North of Wales, is a key example of the innovative work being done by industry to drive towards net zero. The cluster has achieved ‘Track 1’ economic status and is set to capture and store huge volumes of carbon dioxide, which will dramatically increase the UK’s supply of clean hydrogen within the decade. HyNet will be crucial in unlocking a low carbon future, with the potential to reduce carbon dioxide emissions by 10m tonnes each year – the equivalent of taking 4m cars off the road.
Following the publication of these new figures, Jenny Stanning, External Relations Director at OEUK, said:
“This research showcases the significant role of the oil and gas industry in the economy of Wales. Companies based in Wales help maintain the UK’s supplies of home-produced oil and gas while also building the low carbon energy systems of the future.
“By supporting the production of energy in the UK, we can attract the investment needed to avoid becoming increasingly reliant on imported energy, support jobs, and continue to make a significant contribution to the economy while meeting our climate goals, which is why we remain concerned about the impact of sudden new taxes on the sector at a time when we need to prioritise energy produced in the UK.”
The research, conducted by Experian, found that within the UK as a whole, the oil and gas industry contributes £26.5bn GVA, supporting more than 200,000 jobs across the country.
Find out more about the offshore energy industry’s commitment and contribution at www.oeuk.org.uk.