Oil and gas sector on 'cusp of transformation' into renewables

The UK oil and gas sector is on the "cusp of transformation" into renewables, according to a new report.

Aberdeen and Grampian Chamber of Commerce (AGCC) said 75% of contractors surveyed anticipated moving into renewables work over the next three to five years.

This is the highest level recorded since the question was first asked in 2015, the organisation said.

The findings came in the 33rd AGCC Oil and Gas Survey.

The previous survey, published in November, said the UK oil and gas sector was in "economic turmoil" amid the coronavirus pandemic with about a fifth of firms expecting more redundancies in 2021.

The latest study said almost half of the respondents expected to recruit new staff in the next 12 months.

The survey - which cover the six months to April - was carried out in partnership with the Fraser of Allander Institute and KPMG UK.

AGCC said it painted a picture of "fragile optimism".

Martin Findlay, senior partner at KPMG in Aberdeen, said: "As we emerge from the pandemic, we're facing a new set of climate-related challenges.

"Seventy-five per cent of contractors interviewed for the survey told us they're likely to become more involved in UKCS (UK Continental Shelf) renewables work over the coming three to five-year period.

"Contractors also told us oil and gas activity would account for less than three quarters of their business activity by 2025 - down from the current average of 86%."

He added: "The industry is on the cusp of transformation and much of our findings reflect the collective sense of anticipation."

It follows a report on Tuesday which said the majority of the UK offshore workforce could be involved in delivering low carbon energy by 2030.

Experts at Aberdeen's Robert Gordon University said areas such as offshore wind and carbon capture could account for almost two thirds of jobs in the sector, up from a fifth currently.