Up to 10,000 jobs are set to be lost in north-east Scotland’s oil and gas industry in the coming decade, according to a report by Aberdeen City and Aberdeenshire councils.
The decline will follow the loss of 6,000 jobs in the sector since 1996, and is attributed to new technology and restructuring of the oil industry.
The report, Oil and Gas Prospects, warns that oil production in UK waters remains too expensive. It points out that many North Sea oil companies failed to break even last year when oil prices dipped below $12 per barrel.
It also criticises companies working out of Aberdeen for their poor global market share – just 3%. `After 25 years’ production experience, that does not seem a very significant figure,’ the report says.
There are around 18,500 Scottish offshore workers in the UK oil and gas industry. This is expected to fall by more than 4,000 by 2001, then decline less rapidly.
Employment in onshore operations peaked at 30,800 in 1985, falling to 24,800 in 1996. This is predicted to fall below 20,000 by 2001.
The report also highlights the concentration of more activities into the hands of multidisciplinary, integrated engineering companies with large numbers of employees.
* Kvaerner job cuts, p4