Offshore Energies UK (OEUK) has praised the First Minister’s announcement of an additional £25 million to accelerate the transition to lower carbon energies – but warned that Scotland and the UK will need secure supplies of oil and gas for many years to come.

Mr Yousaf made the announcement in Aberdeen as part of the ten-year Just Transition Fund, established by the Scottish Government in 2021, to accelerate the transition in the North East of Scotland.

OEUK said the funding was an important step forward, but it is essential to recognise the continuing role of oil and gas in Scotland’s economy. The offshore energy sector’s workers will also be key to building a low-carbon transition both now and in the future, anchoring a world class offshore supply chain in Scotland’s energy communities.

David Whitehouse, OEUK’s chief executive, said:
“The announcement today shows the new First Minister is thinking long-term about Scotland’s diverse energy future and taking steps to ensure the success of the energy transition for communities in Aberdeen and the North East. This is an important step.

“As we build a sustainable future, it is important to remember there is no simple choice between oil and gas or renewables. The reality is that we need both.

“The people and skills in the offshore oil and gas sector are the same ones driving the expansion of wind, hydrogen, carbon capture and storage – all solutions that will be key in our drive to reach net zero by 2045.

“But by the mid 2030s, oil and gas will still provide 50% of our energy needs. This is why the Scottish Government’s final energy strategy must acknowledge the continuing role of oil and gas in Scotland’s economy.

“We look forward to working with the Scottish Government to achieve this.”