Oil and Gas UK report reveals scale of North Sea job losses

The scale of job losses in the offshore oil industry during its recent contraction has been revealed by a new economic impact report by trade body Oil and Gas UK.

As expenditure was cut the number of jobs supported by direct, supply chain and indirect employment had fallen from 440,000 to 375,000, according to the report. This represents a 15 per cent cut since the start of 2014.

This is a response to the low price of oil resulting in a 20 per cent fall in revenue last year followed by a 30 per cent drop this year.

However, with new fields recently coming on-stream, total oil production is expected to rise this year for the first time since 2000.

Oil and Gas UK’s chief executive Deirdre Michie said the sector was facing “very challenging times” exacerbated by falling commodity prices.

"Difficult decisions have had to be made across the industry. It is likely that capacity may have to be reduced still further in order for the business to weather the downturn.

"The industry is under a lot of pressure and it is now widely recognised that a transformation in the way business is done is required if the UK sector is to become more resilient and competitive in a world of sustained lower oil prices,” she said.