More North Sea Jobs At Risk

Published at 08:40AM - 06/06/16

Over half (51%) of oil and gas companies present in the North Sea have cut jobs in 2015, according to Bank of Scotland’s latest annual oil and gas report, “Re-evaluating Strategies”.

According to the survey, for every job gained in the UK oil and gas sector, six jobs were lost over last year. For every job lost in exploration and production, eight were lost in the services and equipment supply chain.

“The bad news on jobs will continue in 2016, but it is expected to be at a much lower level, at about a third of the cuts made last year”, the report reads.

More North Sea Jobs At Risk

Last year, the majority of job cuts happened in major layoffs of more than 250 people. This year, fewer major losses are expected, but the survey indicates that total cuts across the North Sea and the onshore supply chain may still be around thousands.

However, if the price rises above US$40 per barrel can be sustained, “the worst may be over, though there still will not be an immediate end to the bad news”, the report adds.

On the other hand, job gains are expected to grow, signalling “hope that employment trends may be bottoming up”.

“Cautious Optimism For The Future”

Oil and gas majors took the hardest hit, with two-thirds forced to let go employees. The most severely affected sectors have been: drilling, marine services and inspection, repair and maintenance.

“For jobs dependent on the North Sea, 2015 was very challenging. (…) The British oil and gas sector is facing some of the most challenging market conditions in years,” the report reads.

However, the situation could be changing. “Though there are undoubtedly more difficult decisions to be taken on cost savings, jobs and investment, cautious optimism for the future outlook appears to be slowly returning”, Bank of Scotland North of Scotland Area Director, Stuart White, said.

Bank Of Scotland Oil & Gas Report

To read the full Bank of Scotland Oil % Gas report, click here.