Oil & gas UK will be subject to a further loss of jobs. This opinion is shared by Ian wood, founder of oil services company Wood Group Plc. Wood is the author of influential publications that predict the future of this industry. According to the latest data, oil and gas companies located in the region of the North sea, will cut jobs, which is why more than 45 000 employees in 2016 will lose their jobs.
Wood cited the example of the fact that those in the industry cut about 150 jobs a day. “Last year we lost more than 65,000 workers. Given that the dynamics of this rate in 2016 to be similar in 2015, it is unlikely that something will change,” said wood.
Besides, it is accompanied by a decrease in oil prices. The price of Brent crude oil fell to the average level of 2015 at $52,35 (£37,05, €46,88) per barrel. Other prices fell to 12-year low of $27 per barrel in January 2016, although it is now growing and has already hit$ 40 per barrel. Such indicators reflect enormous and a sharp decline compared with 2014, when the average price was $99,03 per barrel.
Falling oil prices provoked a decline in profits oil and gas companies who tried to produce minimize their costs by reducing jobs. According to industry service in the UK, in this area there were about 440 000 people at the end of 2014. In September 2015 this number decreased to 375,000. Now, in 2016, wood forecast a decline to 320,000 jobs.
Projections Ian wood confirmed the statements made in the past oil companies, including BP, Petrofac, Shell, Chevron, Talisman Sinopec and others. In his opinion the British government should pay increased attention to the sector of energy production and to rebuild the industry. As one of the ideas he proposed tax cuts. However, in conclusion, he noted that the price of$ 40, the loss of jobs and the exhaustion of resources is inevitable.