UK oil industry warns 30,000 jobs at risk due to coronavirus
Up to 30,000 jobs could be lost in the UK’s oil and gas industry due to the market disruption caused by the covonavirus pandemic.
According to a survey conducted by sector body Oil and Gas Uk (OGUK), one in five of the 151,000 sector employees could lose their jobs due to the crisis.
Oil prices are currently trading at levels not seen since around the turn of the millennium due to the complete collapse of demand for the fuel.
Some of the job losses have already been announced, with more predicted to follow as the crisis continues.
Around 30 per cent of the survey’s respondents said that they had been successful in obtaining funding through the government’s various schemes.
OGUK chief executive Deirdre Michie said: “With historic low oil and gas prices coming so soon after one of the most severe downturns our sector has experienced, these findings confirm an especially bleak outlook for the UK’s oil and industry.
“If the UK is to maintain its supply of domestic energy, protect jobs and build the critical infrastructure it needs to transition to a net-zero future, ours is an industry worth fighting for.”
The report also warns that levels of drilling activity are expected to fall as much as 50 per cent this year, pushing activity to record lows.
Firms’ capital spending commitments for year are also set to drop to £3.5-£4bn, the lowest levels since the 1970s, due to the economic freeze.
OGUK have called on the government to support a three-stage framework through which to protect the industry through the ongoing disruption.
The deal, which will cover the industry’s immediate needs and requirements for recovery, will also be aligned with the transition to net-zero.