A report released by the UK’s Oil and Gas Authority (OGA) has revealed that the North Sea oil and gas sector has lost more than 5,000 jobs since late-2014.
The new ‘Call to Action’ report, commissioned by the UK Secretary of State for Energy and Climate Change, identified the key risks facing Britain’s oil and gas industry after a fall in global oil prices.
A 55% fall in brent crude prices created a challenging economic environment for companies involved on the UK Continental Shelf (UKCS), the report added.
The companies were also compelled to make some tough decisions in a bid to cut operating costs and improve efficiency, while remaining competitive.
OGA chief executive Andy Samuel said: "Regrettably, this has led to the loss of around 5,500 jobs since late-2014."
"We should be in no doubt about the scale of the challenge ahead, but it is important that we recognise the progress that has been made over the past six months and remain focused on things that matter most as we look forward."
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OGA is working with other groups such as the Scottish Energy Jobs Taskforce, and continuing to encourage companies to consider all possible alternatives to redundancy, and retain capability required for the future.
According to Samuel, the Call to Action report has identified clear actions for the OGA and for industry and has helped to focus on the collective efforts on urgent priorities.