Oil and Gas Sector Downturn ‘Has Cost 65,000 British Jobs’
September 14, 2015
The contraction of Britain’s oil and gas sector in recent quarters has resulted in the loss of 65,000 jobs around the country, including many in Scotland, according to a prominent trade body representing the industry.
A reduction in revenues among oil and gas firms has left businesses across the industry having to reduce costs quickly and needing to shed jobs in the process.
Scotland’s energy sector has been a major contributor to the national economy but recent years have seen a significant downturn in the number of jobs supported by the industry.
According to the trade body Oil and Gas UK, the number of people employed directly or indirectly by its members has fallen from 440,000 to 375,000 since the beginning of 2014.
“Difficult decisions have had to be made across the industry,” said Oil and Gas UK’s chief executive Deirdrie Michie.
“We estimate that employment supported by the sector has contracted by 15 per cent since the start of 2014 to 375,000 jobs. It is likely that capacity may have to be reduced still further in order for the business to weather the downturn.”
As part of its annual economic impact report, the oil and gas trade body called for tax cuts to be afforded to the industry and for Treasury incentives to be offered to help boost investment around the country.
At present, estimates and expectations are that there will be a reduction of up to £12 billion in the amount of money being invested within the UK’s oil and gas sector during the next three years.
Costs across the industry have been cut by around 8 per cent this year and are expected to be trimmed by a further 14 per cent next year, according to Oil and Gas UK’s latest figures.
At the heart of the problems for the UK’s oil and gas sector operators, which employ many thousands of people in Scotland alone, has been a sharp downturn in the prices paid internationally for energy resources.
In particular, the fact that Brent crude oil now sells for around half the price it did 12 months ago has been a serious source of difficulty for British businesses in the energy industry.
If your credit score has been affected by problem debt, you may be looking for ways to start rebuilding it and getting on with your financial future. Whether you are still struggling with your debt or have entered into an official debt management or insolvency procedure such as a Debt Arrangement Scheme (DAS), Trust Deed […]
If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]
A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]
If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]
A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]
Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]