Crisis will hit energy jobs

The UK oil and gas industry is likely to see job losses as a result of the global economic crisis. A wide-ranging survey of the industry also showed operators expected a fall in activity in 2009.

A lack of lending from financial institutions and the collapse in the price of oil were likely to have a significant impact, it was found.

Despite the findings of the Aberdeen and Grampian Chamber of Commerce Oil and Gas Survey, the industry remained fundamentally strong, business leaders said.

They called on the government to implement policies at the next budget aimed at encouraging future investment in the sector.

The survey found that, although there was a rise in total activity during 2008, a quarter of operators expected the same level of activity in 2009 while three-quarters expected it to be reduced.

Geoff Runcie, the chamber's chief executive, said: "The survey also suggests that the present global financial crisis will result in cutbacks and a change to the structure and pace of the industry's investment, leading to a period of consolidation and reassessment of operations and future plans.” 

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