The closure of Grangemouth refinery has left the UK exposed to imports of Russian oil, according to industry figures and business leaders who say current UK Government energy policy is undermining both security and credibility.
The warning follows a letter sent to the UK Government’s Energy Secretary by Aberdeen & Grampian Chamber of Commerce, which accused ministers of pursuing an energy strategy that weakens domestic capability while increasing reliance on international supply chains.
In its intervention, the Chamber said the UK has adopted what it described as an “incomprehensible” approach by eroding its own ability to produce, refine and supply energy at a time when Europe is facing ongoing instability and insecurity.
The letter warned that the loss of refining capacity at Grangemouth has created a structural dependency on overseas imports, leaving the UK with limited control over supply chains and exposing consumers and industry to greater geopolitical risk.
Industry body Offshore Energies UK has also raised alarm, estimating that around 1,000 jobs are being lost every month across the energy sector and criticising the decision by UK Chancellor Rachel Reeves to retain the Energy Profits Levy in the UK Budget.
OEUK warned that maintaining the levy could cost tens of thousands of jobs, stall investment and further undermine both Scotland and the wider UK’s energy security at a critical moment.
Further concern has been triggered by a downgrade from the North Sea Transition Authority, which has cut its production forecast to 2050 by almost one billion barrels of oil equivalent, a reduction that OEUK estimates represents a £50.6 billion hit to the UK economy.
Responding to the figures, SNP MSP Kevin Stewart said the consequences of UK Government policy were now becoming impossible to ignore.
“Failed UK Government energy policy is not only destroying jobs and damaging our economy, it has left the UK exposed to Russian imports, with Labour’s approach effectively bankrolling the Kremlin.
“The loophole allowing this situation must be closed urgently, but it raises a wider and more troubling question about why the Labour Government is willing to risk jobs, investment and energy security in this way.
“Scotland was treated as an afterthought when Westminster allowed Grangemouth to close, and every warning from industry since has shown just how serious that mistake was.
“With every job lost and every energy bill that lands on a doormat, people are reminded of the cost of having our energy policy controlled elsewhere, and why Scotland needs the powers to use its own resources in the interests of its own people.”
