June 2016
Featured in this insight: Central government & non-department public bodies, Oil & gas
Oil and gas operators planning job cuts, survey finds: A recent oil and gas survey, conducted by by Aberdeen & Grampian Chamber of Commerce in partnership with the Fraser of Allander Institute, has revealed that operators in the North Sea are planning further job cuts in the United Kingdom.
The survey revealed that confidence within the oil and gas sector is low, with operators saying that they have experienced a 15 per cent fall in their UK-based employees in the last year. Further to this, the operators anticipate a 17 per cent decrease in the next 12 months.
Of the oil and gas contractors in the survey, approximately 75 per cent said that they are not as confident about their prospects as they were 12 months ago. Just 7 per cent said that they feel more confident than last year.
When asked what their main priority is, 42 per cent cited increasing productivity and efficiency. A further 25 per cent cited cutting costs.
The contractors in the survey revealed that the following factors are constraining them: levels of demand, economic climate and commodity prices, as well as complex regulations, costs of capital and taxation issued.
In terms of skills shortages, 50 per cent cited it as a limiting issue, and a further 43 per cent cited loss of employees to other companies.
All of the above factors were said to have contributed to a decrease in investment.
When asked about Britain’s potential exit of the European Union, the North Sea Industry were largely unfazed, with 45 per cent of the operators suggesting that it is difficult to decide what outcome would best benefit oil and gas companies.
The UK Government has claimed that the Energy Bill, which has recently received the Royal Assent, will allow the oil and gas industry to better support itself by giving it new powers.
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