Jobs linked to offshore oil and gas in the UK have dropped sharply since 2014 along with commodity prices. New employment figures indicate about 330,000 jobs in the UK in 2016 will stem from oil and gas, down from more than 450,000 in 2014.
Oil & Gas UK requested the analysis from Experian, a marketing services company. It focused on three categories of employment: direct employment, indirect employment, and induced jobs.
After peaking at more than 450,000 in 2014, jobs fell to 370,000 in 2015. The 330,000 cited for 2016 includes a forecast of 40,000 job losses by yearend. In 2014, direct employment was 41,700; indirect, 201,000; and induced, 211,100, for a total employment of 453,800. In 2015, direct was 38,200; indirect, 160,600; and induced, 170,800, for a total employment of 369,700. The 2016 forecast is direct, 34,000; indirect, 151,500; and induced, 144,900, for a total employment of 330,400.
OGUK noted that more than 20% of the oil fields on the UKCS are operating at a higher unit cost than the current price of about $50/bbl.
