Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

North Sea loses 5,500 jobs in oil market downturn - regulator

Published 07/09/2015, 04:12
© Reuters. Men leave BP's North Sea Headquarters in Aberdeen
CVX
-
BP
-
SHEL
-
COP
-
LCO
-

By Karolin Schaps

LONDON (Reuters) - Britain's North Sea oil and gas sector has shed more than 5,000 jobs since late last year, the country's new Oil and Gas Authority said on Monday, putting an official figure on job losses resulting from a year-long decline in oil prices.

North Sea oil companies have been particularly hard hit by the near 55 percent decline in Brent crude prices since June 2014, as they were already facing some of the industry's highest operating costs in one of the world's most mature basins.

"Regrettably, this has led to the loss of around 5,500 jobs since late 2014," Andy Samuel, chief executive of the OGA, said in a report summarising the newly-created body's first months.

North Sea operators, including Shell (L:RDSa), BP (L:BP), Chevron (N:CVX) and ConocoPhillips (N:COP), have all announced staff cuts, a trend that has raised concerns about an emerging skills gap.

The OGA, established as an executive body five months ago, is tasked with helping North Sea operators squeeze as much oil and gas out of the basin as possible.

The oil and gas sector employs around 375,000 people and remains an important source of tax revenue, despite those receipts dropping.

UK oil production has fallen to the lowest since output started in the mid-1970s as old fields run out of resources.

Two operators recently announced their intention to shut fields early, making the OGA's mission more pressing than ever.

The body said it had helped mediate commercial discussions between companies involved in the running of Theddlethorpe gas terminal, and the Sullom Voe terminal on the Shetland Islands, key facilities in the North Sea but which are expensive to operate.

© Reuters. Men leave BP's North Sea Headquarters in Aberdeen

"We should be in no doubt about the scale of the challenge ahead," Samuel said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.