Oil Industry To Face Further Job Losses
Posted on: 02/03/2015

This past year has seen a difficult time for the oil and gas industry, over 1,500 jobs have already been lost and now Ian wood, author of a state-ordered report, has warned that a further 15,000 roles dependent on the industry could suffer the same fate in upcoming months.

Big players in the industry such as BP Plc, Total SA and Royal Dutch Shell Plc will all be making cuts here including reducing of staff, limiting investment and closing certain operations.

John Taylor from Unite’s regional organisation said: “The 1,500 redundancies; that’s just the start… Half of that is drilling. There’ll be more construction workers later as projects come to an end in the next two months.”

It has been reported that more than a third of U.K fields are uneconomic at the current oil prices, forcing many to closure or at least job losses- BP has already seen a loss of 300 jobs this year alone.

However the worst may not be over yet. Experts have given estimations that investment will drop by more than 50% in the next year, with this increasing rapidly to 70% by 2018 due to the low oil prices and high U.K. taxation, something which Ian Wood has recently been contesting.

Taxation has been subject to recent talks, and it is expected that George Osborne, Chancellor of the Exchequer, will bring in field allowances which reduce taxation to below 50% and thus encourage investment. However Ian Wood maintains that “this is still too high… The net effect should be below 40 percent to change the mind and mood of investment in the North Sea.”

The treasury have refused to comment on their plans, and whilst these proposals may not quite fulfil the extensive demands of the industry it is a significant development and will certainly help to secure continued investment.

Whilst we recognise the tough times that have recently faced by the oil and gas industry within the UK, we remain optimistic that this will turn around and taxation reviews are certainly a step in the right direction.

For recent oil & gas news please follow us on twitter @BlueprintOnG

Vacancies By Email

Get There First With Vacancies By Email

Get specific job types, tailored to your requirements, sent straight to your inbox as soon as they are available. Register Now »

Latest Oil & Gas Jobs

Cost Engineer / Cost Controller Permanent | London, London, England | £40,000 Per Annum

We have an excellent opportunity for a Cost Controller to join a leading oil & gas company on a permanent basis in Greater London / Surrey.
Read More »

Expert Subsea Umbilicals Engineer Contract | Edinburgh, London, England | £550 Per Day

We are currently seeking an Expert Subsea Umbilical’s Engineer to join a specialist contractor within the Oil & Gas industry on a contract basis in London.
Read More »

Material and Corrosion Engineer Permanent | Kingston upon Thames, Surrey, England | £60,000 Per Annum

We have a brilliant opportunity for a Material and Corrosion Engineer to join a global leader in the Oil and Gas Industry on a permanent basis in Kingston.
Read More »

Risk Engineer Permanent | Kingston upon Thames, Surrey, England | £60,000 Per Annum

Due to an the award of new Projects, our client- a highly respected consultancy within the Oil and Gas sector- is seeking a Risk Engineer on a staff permanent basis, based in the South West London / Surrey area.
Read More »

Junior Project Manager Permanent | Kingston upon Thames, Surrey, England | £50,000 Per Annum

Due to an increased workload, our client- a highly respected consultancy within the Oil and Gas sector- is seeking a Junior Project Manager on a staff basis, based in Surrey.
Read More »