Oil sector job losses ‘to reach 120,000 by end of year’

This year we have seen an alarming amount of jobs losses throughout the UK and Ireland due to the downturn in the gas and oil sector. The number of jobs lost could top 120,000 by the end of this year, according to a reliable report. Oil & Gas UK estimated 84,000 jobs linked to the industry went in 2015, with 40,000 losses expected this year. The new figures suggest 330,000 jobs would be supported by the end of 2016.

Last week a Bank of Scotland/Lloyds Banking Group survey suggested that a third of UK oil and gas businesses planned to cut jobs further during this year. Many companies have been struggling due to the fall in the price of oil. Brent crude is currently trading at about £35.30 a barrel, less than half the price it was in 2014 when jobs linked to the sector peaked at over 450,000. Oil & Gas UK chief executive Deirdre Michie said: “The industry has been spending more than it is earning since the oil price slump towards the end of 2014”.

The Top Up Fuels team could have predicted this would be the outcome due to the decrease in oil prices throughout the past years. Shell were forced to make further job cuts to multiple employees due to prolonged weak oil price environment. A third of the UK’s oil and gas firms are planning further job cuts this year as a result of a slump in prices, a new survey has revealed. The industry report, from the Bank of Scotland, found 43% of companies are planning further cost-cutting measures because of the downturn, with 32% of businesses planning to cut jobs.