North Sea oil workers face uncertain future

UP to 30,000 North Sea oil and gas jobs could be cut unless the Government steps up support, the industry claims.

The crash in oil prices could put 10pc of the sector’s 300,000 workforce at risk and reduce new investment in the region to the lowest level since 2000, according to trade body Oil & Gas UK (OGUK).

Oil prices fell sharply again yesterday as concerns rose that the world is running out of places to store all of the oil going unused due to the coronavirus crisis.

US oil prices plummeted 25pc to $13 a barrel, while global benchmark Brent crude lost 8pc to trade below $20. The falls will add to fears that oil group BP, which releases first- quarter results today, will be forced to cut or axe its dividend. Rival Shell reveals if it is paying dividend, alongside results, on Thursday.

OGUK has urged the Government to go beyond its job retention and loan support packages for businesses by considering an equitybased finance solution.

Guaranteed by the Government, this would mean banking or private equity groups could invest in companies and then convert that into a shareholding at a later date.

OGUK chief executive Deirdre Michie said: ‘If the UK is to maintain its supply of domestic energy, protect jobs and build the critical infrastructure it needs to transition to a net zero future, ours is an industry worth fighting for.’ PRINTED AND DISTRIBUTED BY PRESSREADER PressReader.com +1 604 278 4604 . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY ORIGINAL COPY