In an uncertain world, the UK’s energy supply chain needs certainty more than ever

By Derek Thomson, COO, Nexos Group

This year’s All-Energy conference was a timely reminder of what our industry does best. Gathered at the SEC in Glasgow across the course of two days, the many faces of the energy sector demonstrated the collaborative spirit, technical depth and shared ambition that has delivered some of the most complex energy infrastructure in some of the world’s most challenging environments. 

While there’s a perception that cloud has been lingering over both the oil and gas and the renewables industries in recent years, a few inescapable facts remain. The talent is here. The capability is here. And increasingly, so is the acceptance that oil and gas and new energy are not competing stories, they are one and the same.

Still, projects in both camps are taking longer than expected to reach Final Investment Decision. The economics are not playing out as they should. FID dates are slipping to the right. And with every delay, the supply chain's ability to plan, invest in people and build capacity erodes a little further.

The numbers tell a stark story. According to Wood Mackenzie, North Sea upstream investment is expected to fall below $3.5bn in 2026 - its lowest real-terms level since the 1970s - with no new projects sanctioned since mid-2024. 

It was a privilege to appear on an All-Energy panel alongside industry experts to unpick these issues and to discuss what we are seeing at the frontline of energy delivery. The conversation was honest and constructive, and it reinforced something Nexos Group sees every day - the supply chain is ready to back the energy transition with real investment, real people and real expertise.

A supply chain built for what comes next

Nexos Group is already living the transition. By 2027 we expect our portfolio to be split more equally across oil and gas and new energy, spanning renewables, power distribution and transmission. The North Sea expertise we have built over decades is the foundation on which we build on.

The skills transfer is one of the most encouraging developments we are seeing on the ground. Electrical engineers who have spent careers working on offshore switchgear, transformers and power systems are precisely the people needed to build data centres, compression upgrades and transmission infrastructure. The disciplines are the same, the only change is the application, and our people are rising to that challenge.

By the end of 2030, Energy & Utility Skills estimate that the energy and utilities sector will need to attract and recruit 312,300 new people into the workforce. That is an enormous challenge, yes, but it is also an enormous opportunity to build careers, grow communities and establish the UK as a global leader in energy delivery. 

Partnership is the model that works

One of the strongest themes from the panel was the power of genuine collaboration – a conference buzzword, but one that is incredibly important, especially when backed up by evidence. When client and supply chain are aligned to the same outcome, the results speak for themselves.

Early engagement, transparency about programme needs and a genuine willingness to invest time on both sides produces success and a well-positioned delivery partnership. That is the standard every major programme should be aspiring to.

Getting the conditions right

The sector's ambition to decarbonise, transition skills and deliver energy security is not in doubt. What will determine whether that ambition is realised is whether the right commercial and policy conditions are in place to support it.

The ask from industry is reasonable and well-evidenced. Bringing supply chain partners into project development earlier - at concept or align phase rather than FEED - allows contractors to plan, invest and build the capacity the energy transition demands. The pipeline of opportunity is substantial; what the supply chain needs is the visibility and certainty to pursue it with confidence.

At a policy level, moving from the Energy Profits Levy to the Oil and Gas Price Mechanism would unlock an estimated £17.5bn of new investment that operators have already put on the table. That is precisely the kind of visible, long-term pipeline that allows the supply chain to grow into the transition rather than simply react to it. 

Voices from across the industry continue to make this case consistently and it is an issue that deserves serious consideration.