'Worrying signs' for employment in the Oil and Gas sector

OGUK's workforce insight report shows 4,000 less people were on offshore installations when the UK entered lockdown in March - despite a slow rise back, the industry is still a long way from pre-covid levels, and there are calls for Government support.

Author: Lewis MichiePublished 27th Oct 2020
Last updated 27th Oct 2020

Oil and gas body OGUK say 'tentative signs are worrying' in regards to both on and off shore employment.

They have called for the governments, industry and regulators to work together to protect jobs and skills.

OGUK's workforce insight report for 2020 found the number of workers on oil and gas installations decreased by around 4,000 - from a weekly average of 11,000 to just over 7,000 - when lockdown hit in March.

The report also confirms the uptake of the Coronavirus job retention scheme by companies - especially those in the supply chain.

Commenting, report author OGUK workforce engagement and skills manager Dr Alix Thom said:

“Our figures confirm the initial operational impact of the lockdown back in March this year, with the number of workers offshore decreasing considerably in the space of a month as companies reduced to minimum manning in a bid to control the spread.

“Numbers have risen steadily since then as industry has adopted a robust swiss cheese barrier model, with a range of preventative measures in place both prior to mobilisation and whilst offshore, which has helped secure more jobs and increase operations in the immediate term.

“Despite this, we continue to see some very worrying signs for employment in the sector, with the uptake of furlough and continued suppression of global energy demand impacting our industry like many others in the wider economy.

“As our report shows, the recruitment and retention of diverse and talented people will be essential as we work to support UK energy needs both now, and in a lower carbon context. A North Sea Transition Deal, supported by the UK and Scottish governments, can act as a catalyst for this future, and in so doing will provide certainty on the sustainability for the sector in difficult times.”