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Oil Job losses in the UK to Reach 120,000 by Year End

An estimated 84,000 jobs linked to the offshore industry in the UK were lost just last year and a further 40,000 jobs are set to be lost by the end of this year.

Oil Job Losses in the UK to Reach 120,000 by Year End

UK’s gas and oil sector had supported over 453,000 jobs linked to the sector either via its expansive supply chain or indirectly via various trades such as in taxis or hotels. But this year report carried out by Experian, a marketing services company, shows that the sector will only be able to support about 330,000 jobs within the industry incurring thousands in losses.

Another survey by Bank of Scotland and Lloyds Banking Group revealed that a third of UK gas and oil companies were planning of cutting down on jobs within the year.

Majority of these job losses are thought to be because of the steady fall in the price of oil. As of now the brent crude oil is trading at about $50 per barrel which is less than half the price the same barrel went for back in 2014 when the sector was at its peak.

"The industry has been spending more than it is earning since the oil price slump towards the end of 2014. This is not sustainable and companies have been faced with some very difficult decisions,” said oil and gas UK chief, Dierdre Michie.

“To survive, the industry has had no choice but to improve its performance. It is looking to find efficiencies to restore competitiveness, to attract investment and stimulate activity in the North Sea. With up to 20 billion barrels of oil and gas still to recover, this region is still very much open for business."

The Oil and Gas UK will hold an annual conference next week in Aberdeen in order to discuss ways in which to get the sector out of its current slump.

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