A policy paper from the British government entitled “Oil and Gas Workforce Plan” is saying that further training and work on decommissioning oil and gas projects could be key to maintain a healthy workforce.
The report explains that nearly one in every 80 jobs in the UK was supported by the oil and gas sector throughout 2014 and retraining oil and gas workers for other sector may help the workforce among dimming labour prospects.
“The industry is currently facing an unprecedented period of difficulty in the face of continuing low commodity prices. Maintaining a vibrant UK oil and gas industry is critical [as] the industry is a key contributor to gross domestic product, to tax revenues, and an important source of exports,” the report reads.
Oil Workers Crisis Could Be Resolved By Training
The report stated further that decommissioning could be essential to direct these workers.
“The UK’s experience of being one of the first major offshore production basins anywhere in the world to reach maturity and begin the transition towards decommissioning puts it in an ideal place to become a world leader in this subsector, creating skilled jobs and employment,” the report says.
According to the government estimates, decommissioning could actually bring approximately US$22 billion (£16.97 billion) in new spending by 2024, while the cost of decommissioning oil and gas projects would reach a total of US$66 billion (£50.9 billion).
UK Oil Jobs Fell By 120,000 Since 2014
“The purpose of producing a UK oil and gas workforce plan is to help deal with both short and long-term issues in the sector,” the report reads.
“In the short-term, the focus is on what can be done to support individuals losing their jobs, and how governments and industry can help these skilled workers move into other sectors,” it added.
An earlier report by industry group Oil & Gas UK had already showed that jobs in the oil and gas sector had fallen by 120,000 since the 2014 peak in crude oil prices.
At the time, the report stated that a further 40,000 losses were expected by the end of this year even if crude stabilises at $50.