MORE OIL AND GAS JOB LOSSES LIKELY IN THE NORTH SEA DUE TO LOW PRICE OF OIL

oil and gas production

Despite a seven to eight per cent increase in UK oil and gas production in 2015, more redundancies are likely on its way for oil and gas workers in the North Sea. According to an industry body, the redundancies have been put down to the low price of oil.

At the beginning of 2015, oil and gas production was expected to only see a marginal increase. The oil and gas industry defied this prediction with its seven per cent increase. However, this does not seem to have helped those working in the oil and gas industry. It is likely that over the next few months things are going to be very tough for those currently working in the industry.

Only recently did Deirdre Michie, Chief Executive at Oil and Gas UK announce the positive oil production figures and explained that with the current issues facing the oil and gas industry ‘this is welcome news’.

For the first ten months of 2015, oil and gas produced in the UK was up by more than eight per cent when compared to the previous year. The production of liquids and gas was also up during this period by more than ten per cent and six per cent respectively.

Ms Michie explained that output in the remaining two months of 2015 are usually more stable. Taking this into account, Ms Michie on behalf of Oil and Gas UK announced that the industry expected production to be between seven and eight per cent higher than 2014.

There has been a huge focus on the oil and gas industry to improve production efficiency because of the low price of oil. Clearly, this focus is paying off as the production is increasing at a higher rate. The industry has also received over fifty billion pounds in investments over the last four years to help find new fields on stream.

Last week it was announced by oil company Taqa that they had their first production of oil from the Cladhan Field. Cladhan located in the North East of Shetland are looking to produce a minimum of 10,000 barrels of oil per day.

Ms Michie, concluded by explaining that despite more efficient operations, the price of oil has dropped by over half making times tough in the oil and gas industry and more redundancies were likely.

But, job losses in the industry are not going unnoticed.

Engineering Circle spokesman Peter Maek has wrote a letter to George Osborne to do something to help the oil and gas job industry before it is too late.