The UK's oil and gas industry is warning that up to 30,000 jobs could be lost due to the coronavirus pandemic and low oil prices. A global oversupply has pushed crude prices to their lowest in 20 years, with Brent crude falling as low as $16 per barrel from a peak of $120.
According to a survey by industry body Oil and Gas UK (OGUK), many firms are struggling to survive. The predicted job losses represent about one in five of the 151,000 people employed directly or indirectly by the sector. Some redundancies have already been announced, with many more expected in the coming months.
OGUK chief executive Deirdre Michie described the outlook as 'especially bleak' and called for the transition to net-zero emissions to be central to the recovery plan. The industry has outlined a three-stage plan addressing immediate needs, industrial recovery, and accelerated transition to net-zero.
Green groups have urged that any government support be conditional. Ryan Morrison of Friends of the Earth Scotland warned against returning to 'business as usual', saying it would lock in another crisis. About 30% of companies have secured government Covid-19 funding, while capital expenditure is expected to fall to £3.5bn, one of the lowest figures since North Sea oil discovery.
