The UK’s offshore oil and natural gas industry could end up losing up to 30,000 jobs due to the novel coronavirus (COVID-19), according to a report released by the country's representative body Oil and Gas UK (OGUK) on Tuesday.
The report said companies in the UK's oil and gas sectors continue to have an 'increasingly grim outlook' as they continue to deal with the fallout from the coronavirus pandemic that caused a 20-year low in oil prices and a 14-year low for gas.
The oil and gas industry in the country is expected to see a dramatic reduction in revenue, the report said, adding there are concerns whether some firms could survive a downturn that is expected to be more severe than the one in 2015.
OGUK said it expects companies' capital expenditure could fall to between £3.5-4 billion, the lowest investment since 2000, and their operational expenditures may be reduced by 10-20% to around £6-7 billion compared to expectations at the start of 2020.
'With historic low oil and gas prices coming so soon after one of the most severe downturns our sector has experienced, these findings confirm an especially bleak outlook for the UK’s oil and gas industry,' OGUK Chief Executive Deirdre Michie said in the report.
'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,' she added.
By Ovunc Kutlu