Jobs in UK oil industry are falling at a rapid rate, survey finds

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4th January 2016 11:29 - Oil and Gas

The Scottish business association, The Aberdeen and Grampian Chamber of Commerce, has revealed in a recent survey that the number of Jobs in UK oil industry are falling at a rapid rate, survey findscontactors working in the United Kingdom’s oil and gas industry has declined in the last 12 months at the most rapid rate since 2004 at the least.

The Aberdeen and Grampian Chamber of Commerce has approximated that the total employment in the oil and gas industry decreased by 6 per cent in the 12 months to September 2015. Of the companies who provide resource (or contractors) to the sector, 62 per cent said that they had scaled back their force in the same time frame.

Uisdean Vass, Oil and Gas Partner at Bond Dickinson, said of the research findings: "This is probably the most negative survey we have ever had.”

In United Kingdom’s oil and gas industry cut more than 5,000 jobs since 2014, with the falling oil prices has put pressure on oil and gas companies’ budgets and has led to the cancellations of projects.

The North Sea has been impacted especially hard as the costs associated are largely higher in the mature basin, where many fields are advance towards depletion.

Oil and gas contractors’ business confidence in the industry plummeted to the lowest level since the survey began in 2004 and the prospects for the next 12 months stayed negative.

In the report, The Aberdeen and Grampian Chamber of Commerce said in the research report: "We have reached a new historic low level of industry confidence. It is also clear that things will continue to be extremely challenging in the year ahead."

Just less than a quarter (24 per cent) of the contractors in the survey said that they had taken on new staff this year, as opposed to more than 70 per cent in 2014.

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