Oil & Gas UK Reported in its Workforce Report on Thursday. The Report, However, Notes a Slight Increase in Jobs Abroad for 2018.
The industry body found that the largest reduction in the offshore workforce came from offshore drillers, as drilling activity fell to a record low. The 2017 figures were explained by the drop in oil prices. Oil and Gas UK pointed out that the price of oil fell from around US $ 109 per barrel (bbl) in mid-2014 to an average of US $ 54 / bbl in 2017, leading to a significant contraction across the industry.
“In the wake of the price drop, oil and gas companies had to modernize and streamline to sustain their businesses and focus on improving efficiency in response to the prevailing business environment. This inevitably had a negative impact on employment, both from reduced activity and efforts to cut costs,” the report says.
According to OGUK data, the employment rate in the UK offshore oil and gas industry peaked in 2014, with over 450,000 jobs.
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“However, there was a sharp decline in 2015, when employment fell to around 380,000. The most recent estimates for 2016 and 2017 show supported industry employment levels dropping to lows not seen since 2010/11, with 280,000 jobs estimated to be supported by oil and gas activity in 2017…” Oil and Gas UK said.
Job Growth for 2018
The industry body now estimates a slight increase in employment in 2018 for the first time in four years, as the industry continues to improve its competitive position.
“Total employment is expected to rise by nearly 3,000 jobs over the year to 283,000, up from 280,000 the previous year.”
“This comes after total employment supported by the industry fell by 14% in 2017 – down from previous estimates of 302,000, as the downturn continued to be felt through the supply chain. Increasing levels of investment have been seen in the sector, but have taken time to filter through,” OGUK said.
The industry body said today that broader workforce trends are indicating an industry working to deliver by 2035, improvements in efficiency and technological transformation, suggesting new ways of working for the UK oil and gas sector. The report shows that the average offshore age of the workforce fell last year, with a 20% increase in foreign workers under 30.
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