Jobs boost for UK oil and gas sector

New research by the Bank of Scotland has revealed that over the next two years up to 39,000 jobs will be created in the UK oil and gas sector.

The figure is an estimation of jobs creation from a survey of a broad cross-section of 100 oil and gas companies carried out for the bank’s third annual report on the sector. Around 38% of respondents named a shortage of skills as the greatest challenge to be faced in the near future.

The research found that 69% of the UK’s oil and gas executives are optimistic about growth prospects, with 71% identifying international expansion as a priority in the near future. International income accounts for 44% of turnover, and 46% of exploration and production companies are already planning further growth in foreign markets.

When asked about diversification, 48% of companies were interested in onshore shale gas. Of the companies, 38% had the same degree of interest in funding solutions for decommissioning activities and 36% expressed interest in diversifying into renewables.

Bank of Scotland commercial area director Stuart White said that with most of the country’s oil and gas firms clustered in Aberdeen and the North East, Scotland is expected to reap the largest share of the new jobs.

"The report also highlights the growing challenges posed by the lack of a skilled workforce. Positive action is underway to address this shortfall, with new partnerships between higher education institutions and industry as well as the creation of new specialist apprenticeship schemes," White added.