As Offshore Europe returns to Aberdeen next week, the offshore energy sector faces a growing number of overlapping – and at times competing – priorities.

Since the last conference, the pace of policy, regulatory and strategic change has accelerated.

Offshore wind, carbon capture, hydrogen and electrification projects are now all advancing, drawing on many of the same skills, infrastructure and capital. The result is a more crowded, complex and competitive environment.

The market is now defined by a mix of legacy and emerging sectors – from late-life oil and gas and decommissioning to renewables and carbon capture. Each carries its risks, signals and timelines. For many businesses, the challenge is not simply transition, but how to balance multiple options in parallel.

Rarely will Offshore Europe - Sept 2 to 5, P&J Live, Aberdeen - have brought together such a wide range of strategic conversations – spanning investment, technology, workforce and public policy – in one place.

Energy transition 

The UK’s energy transition is no longer a vision – it is policy. In Aberdeen, known as Europe’s oil capital, the energy landscape is rapidly transforming. With the North Sea oil and gas in decline, the focus is shifting.

Initiatives like the Energy Transition Zone and support programmes are enabling supply chain firms to pivot from fossil fuels to renewables.

Meanwhile, major oil operators are consolidating North Sea assets into new joint ventures, extending existing operations but signalling a collective move toward lower-carbon portfolios.

At the Scottish and UK levels, governments are reinforcing this shift. The UK’s North Sea Transition Deal commits public and private sectors to decarbonise oil and gas production, scale up hydrogen, carbon capture, offshore wind, and allocate around £16 bn investment by 2030.

The creation of Great British Energy (GBE) - formally established in May 2025 and headquartered in Aberdeen - marks a bold step; GBE is tasked with delivering 8 GW of local renewable energy by 2030 and funding low-carbon projects across the UK.

The UK government has pledged no new North Sea oil and gas licences, while maintaining existing fields through a managed transition. However, industry voices warn that without co-ordinated planning, jobs in north-east Scotland and other UK regions could face upheaval, underscoring the need for a just transition that secures livelihoods as the energy mix evolves.

Oil and gas: a shifting landscape

Oil and gas still supports around 115,000 jobs in the UK offshore sector. Drilling activity has fallen to near-historic lows, a trend accelerated by policy changes such as the Energy Profits Levy introduced in 2022. This shift presents challenges for supply chain companies traditionally dependent on steady UK activity. Resource allocation, contract planning and talent retention now demand a more flexible and internationally focused approach.

Decommissioning

Delays could soon lead to million-pound fines and public naming of UK oil and gas operators. The North Sea Transition Authority has expressed growing frustration over the pace of progress, with too many wells left inactive for too long.
Regulatory scrutiny is increasing, and enforcement powers under the Energy Act allow for financial penalties. As pressure mounts, operators are being warned that delays will no longer be tolerated and consequences will be more severe.

Offshore wind

The total capacity of fully operational wind farm in the UK at the end of 2024 was 14.74 GW, generating 49.2 TWh – enough to power over half of UK households.

The sector employed over 32,000 people in 2024. The Crown Estate notes that an additional 68,000 jobs will be needed by 2030, increasing the total workforce to around 100,000.

Scotland now contributes around 3 GW of operational offshore wind capacity, with 1.3 GW currently under construction. Despite Scotland’s lead in floating wind capacity, developers face cost uncertainty, supply chain gaps, and port-readiness issues that could affect delivery timelines.

Carbon capture

Carbon capture and storage is a core part of the UK’s net-zero strategy, but progress has been uneven, and the Acorn Project at St Fergus was selected for Track 2 in 2023. It is technically advanced but still awaiting a final investment decision.

Broader delays persist. Key frameworks for CO₂ transport, storage licensing and long-term revenue support remain incomplete, limiting progress for other clusters and holding back early supply chain mobilisation.

The government set aside £9.4bn for CCUS in the 2025 Spending Review, including £200m for Acorn. But until commercial frameworks are finalised, major projects cannot proceed. For leaders attending Offshore Europe, carbon capture presents both opportunity and risk, requiring financial planning for policy delay, infrastructure readiness and long-term market design.

Subsea digitalisation and electrification

Subsea digitalisation and platform electrification will feature strongly at Offshore Europe, with technologies such as AI-led asset monitoring, remote operations and low-emission drive systems moving closer to industry-wide adoption. While electrification offers a credible route to reducing offshore emissions, it depends on large-scale, co-ordinated investment in grid upgrades and subsea cabling. These solutions are progressing from innovation to implementation. Their successful integration requires not only engineering capability but also careful financial planning and commercial structuring to manage up-front costs, long-term returns and evolving regulatory frameworks.

Supply chain positioning

Contractors face difficult choices: whether to hold capacity for low-carbon opportunities that haven’t fully materialised, or to pivot towards international markets where timelines and margins are firmer. While major project announcements continue across the energy mix, inflation, long procurement cycles and inconsistent delivery frameworks make it difficult for supply chain firms to scale with confidence.

This is where commercial decision-making becomes particularly complex - balancing short-term cost pressures with long-term positioning. Many businesses are now leaning on scenario planning and financial resilience measures, often with external advisory support, to navigate uncertainty and avoid overexposure.

Workforce and skills transition

The UK offshore oil & gas workforce currently stands at around 115,000 – part of a total offshore energy workforce of more than 150,000. Looking ahead, OEUK forecasts that with supportive policy, the combined offshore energy sector (oil & gas, wind, CCUS and hydrogen) could grow to between 200,000 and 225,000 roles by 2030.

This is not just a recruitment issue - it’s a strategic challenge involving training pipelines, supply chain planning, retention strategies and immigration policy. As firms scale, many will need advice on workforce models, regional delivery hubs, international deployment frameworks and how to navigate visa and regulatory requirements while building a resilient talent base.

Policy signals and private investment

Policy and fiscal certainty will be key themes at this year’s Offshore Europe as the sector navigates the UK’s evolving energy strategy. Investor sentiment remains cautious. The Energy Profits Levy (EPL) has increased the overall tax burden on UK oil and gas production to 75% - a level many see as a barrier to reinvestment. Originally introduced to address windfall profits, the levy’s continued application, without a clear endpoint, is adding to uncertainty.

Outlook for Offshore Europe

Offshore Europe 2025 arrives at a pivotal moment. With policy ambition outpacing delivery in several key areas, companies are under pressure to make financially sound, well-timed decisions across multiple streams.

Whether it's investing in fabrication capacity, structuring joint ventures, managing legacy assets or entering new offshore markets, strategic business and financial insight are becoming integral to long-term success.

In a sector shaped by overlapping priorities and competing timelines, clarity on structure, timing and risk is no longer optional. Offshore Europe presents a timely opportunity to explore pressing challenges.

Joe Nellis, MHA Economic Advisor and Professor of Global Economy at Cranfield School of Management, is one of the country’s best-known economists. He was awarded a CBE in the King’s 2024 New Year’s Honours list. He has four decades of experience commenting on UK, European and global macroeconomic trends. 

Michael Meakin-Blackwell is a Director at MHA. As a Fellow of the Association of Chartered Certified Accountants, he works with SMEs across various sectors, with particular expertise in renewables, sustainable energy and construction. He rejoined MHA in 2022, having originally trained with the firm, after serving as CFO of a major design-and-build contractor in the energy sector.