Reason to rejoice – but an existential threat remains  

From a symbolic perspective, GB Energy being headquartered in Aberdeen will instil confidence in the region’s energy industry. 

The Granite City has unrivalled energy expertise with an abundance of highly investable supply chain companies whose know-how, honed in the North Sea oil and gas industry, is eminently transferable.  

The scale of renewable projects coming forward brings unprecedented opportunities for these companies if they can secure investment to diversify and build capacity. 

But further changes to the Energy Profits Levy (EPL) hang over the sector like the grim reaper. 

The reported 35,000 job losses and £13bn damage to the UK economy this will cause in the next five years is a sobering reminder of the consequences that households around the country will face unless the government backtracks. 

Introduced as a windfall tax, the EPL has already been subjected to several changes in both rates and duration since it was introduced by the previous government in 2022.  

With the commodity price hovering around $70, it is hard to justify such a tax. While some may be able to withstand the higher rate of 78 per cent, the removal of allowances could be the final straw. 

Comparison is often made between the UK and Norway. The latter recognises the continued need for oil and gas and offers incentives to ensure it invests in developing renewable technologies, whereas the UK seems hell-bent on the premature demise of its oil and gas industry.  

Supporting our oil and gas industry, recognising its role in the energy transition and creating the right environment for investment is the only way we will reach net zero.

Supporting our oil and gas industry, recognising its role in the energy transition and creating the right environment for investment is the only way we will reach net zero within the timescales. 

Let us rejoice that GB Energy will be headquartered in Aberdeen, but continue to press for sensible energy policies that will protect jobs and the supply chain needed to deliver the transition.