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.
When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line. While no one wants to think about a relationship breaking down, the truth is […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
A trust deed is a common debt repayment programme based around a voluntary arrangement made between you, your creditors and a qualified independent trustee who takes control of your debt repayments for a typical period of four years. If you’re having difficulty paying your debts and have assets or a regular income, you may qualify […]
If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route. Not all insolvency solutions allow debts to be written off, but you may be eligible for a trust deed if you meet certain criteria, with sequestration also being a possibility […]
Her Majesty’s Revenues and Customs (HMRC) is one of the biggest creditors in Scotland, and indeed across the rest of the UK. Millions of people make payments to the government through HMRC in the form of income taxes, National Insurance and VAT every year. For the majority of people in employment, this is done automatically […]
Council tax is a charge levied on residential property and payable to the local council. While some properties are exempt from paying council tax, most households must factor this bill into their monthly budget. Households will be given a yearly charge which can then be broken down into a series of monthly instalments throughout the […]