Three quarters of oil and gas workers considering employment abroad, survey finds

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17th April 2015 11:10 - Oil and Gas

A recent study of 963 UK oil and gas professionals, by Rigzone, has found that approximately three quarters of oil and gas workers are A recent study of 963 UK oil and gas professionals, by Rigzone, has found that approximately three quarters of oil and gas workers are thinking about seeking employment abroad as a result of the plunging oil prices, and the effect that is having on the North Sea industry.  The findings showed that 71 per cent are thinking of seeking a job abroad, due to a lack of job security within the Scotland and the North Sea.  Of the respondents in Scotland, 52 per cent said that they have experienced a lack of confidence in their future prospects over the next five years.  The findings also showed that 45 per cent of those working in Scotland’s oil and gas industry, and also 44 per cent of those working in the industry in rest of the UK, have low confidence in the ability of the tax cuts – announced by Chancellor George Osborne in the Budget last month – to create further investment in the North Sea.  The government’s £1.3 billion package of support for the oil and gas industry includes a cut to the “supplementary charge” on the profits of oil companies, from 30 per cent to 20 per cent. The petroleum revenue tax will also be cut from 50 per cent to 35 per cent next year.  In order to encourage investment in the North Sea oil and gas industry, the government is to introduce a tax allowance, as well as a £20 million fund for new surveys of the UK continental shelf, with the aim to boost exploration.  The survey also found that just 17 per cent of believe that the initiatives will be enough to encourage investment in North Sea exploration over the next 5 years. A further 38 per cent were undecided.  Of the respondents based in Scotland, 67 per cent felt that a return to stable oil prices was more important than the government policy to increase UK offshore reserves.thinking about seeking employment abroad, as a result of the plunging oil prices and the effect that is having on the North Sea industry.

The findings showed that 71 per cent are thinking of seeking a job abroad, due to a lack of job security within the Scotland and the North Sea.

Of the respondents in Scotland, 52 per cent said that they have experienced a lack of confidence in their future prospects over the next five years.

The findings also showed that 45 per cent of those working in Scotland’s oil and gas industry, and also 44 per cent of those working in the industry in rest of the UK, have low confidence in the ability of the tax cuts – announced by Chancellor George Osborne in the Budget last month – to create further investment in the North Sea.

The government’s £1.3 billion package of support for the oil and gas industry includes a cut to the “supplementary charge” on the profits of oil companies, from 30 per cent to 20 per cent. The petroleum revenue tax will also be cut from 50 per cent to 35 per cent next year.

In order to encourage investment in the North Sea oil and gas industry, the government is to introduce a tax allowance, as well as a £20 million fund for new surveys of the UK continental shelf, with the aim to boost exploration.

The survey also found that just 17 per cent of believe that the initiatives will be enough to encourage investment in North Sea exploration over the next 5 years. A further 38 per cent were undecided.

Of the respondents based in Scotland, 67 per cent felt that a return to stable oil prices was more important than the government policy to increase UK offshore reserves.

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