Employment boom predicted for North Sea oil and gas sector

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   By Lynda Williamson

The North East looks set for an employment boom according to analysis commissioned by OilandGasPeople.com, which foresees the creation of up to 50,000 jobs in the North Sea oil and gas industry.

The prediction comes on the back of record breaking levels of investment in the sector which will see some £40 billion ploughed into North Sea production over the next three years.  The UK Government has awarded 167 new licences on 330 blocks, as well as relaxing the tax regime, in a bid to boost the industry.

Norwegian Company Statoil, which is part owned by the Norwegian Government, last month announced its investment of £4.3 billion in the Mariner Field, east of Shetland.  This is the biggest investment in the last decade and will see the creation of approximately 700 jobs.  The field is expected to produce oil for the next 30 years.

There was further good news when it emerged that Babcock’s Rosyth plant will also see increases in employment after the firm won a £30 million contract to build subsea equipment to be used in drilling operations in the North Atlantic.  Babcock will manufacture 74 subsea structures creating 100 new jobs with further opportunities in training and development.

The company, which has benefitted from Royal Navy contracts in recent years, is increasingly looking to the hydrocarbon and potentially lucrative renewables sectors as the UK government scales back on MoD spending.

Commenting on the contract, Mike Pettigrew, Babcock’s managing director for future business said: “This is a multifaceted technical programme which will sustain over 100 positions and provide training and development opportunities here at Rosyth.  In addition, we will continue to involve our apprentices in exciting and specialised areas of our operations, strengthening the skills base of our next generation of engineers.”

The contract forms part of a larger redevelopment of the Schiehallion and Loyal fields which should extend the life of the fields through to 2035 and enable the recovery of an extra 450 million barrels of oil.

The boost in investment will see UK employment in North Sea industries approach the half a million mark.

Kevin Forbes, the chief executive of OilandGasPeople.com, a leading recruitment agency for the industry, said:

“There’s been a lot of talk about the North Sea being in decline but employment is booming at the moment.

“Decommissioning projects are taking off as they come to the end of their life.  At the same time, the consistently high oil price, tax changes and new technology have made it economically viable to extend the life of existing projects and start new ones.”

The demand for skilled workers in the oil and gas sector has put pressure on wages with the average salary of £64,000 already more than twice that of the national average which stands at £25,500.  Employers are finding that they need to offer higher and higher wages in order to attract the skilled workers that they need.

Ms Watt, SNP MSP for Aberdeen South and North Kincardine, claimed that the news was further evidence that Scotland would be wealthier as an independent country.

She said: “The forecast of a jobs boom highlights a very bright future for the oil and gas industry – and a positive knock on effect for Scotland’s economy which we hear just today is in ‘growth mode’ and outperforming the UK economy.

“North Sea oil is a tremendous asset with vast untapped reserves worth up to £1.5 trillion which will help an independent Scotland to prosper and become a wealthier and fairer nation.

“Instead of being squandered as they have been by successive Westminster Governments – whether Tory or Labour – we need the powers of an independent Scotland to ensure that oil and gas resources work for the benefit of the people of Scotland.

“The anti-independence parties have been saying that the oil and gas is running out since the early years of production in the 1970s – and the reality now is that more than half of the revenues are still to come.”

36 COMMENTS

  1. Oh no, now we’ll definitly have to get the big boys in from London to look after all that money. Otherwise we’re doomed !!!

    It’s less than a week since the senior shop stupid from Rosyth was running round with No Darling telling the world the SNP were rubbish, they’ve done nothin’ and they’ll come to nothin’. That numpty must feel a bit of a nyaff tonight.

    Even the real gaffer of the Rosyth yard said on the news “The Royal Navy is not going to get any bigger, so it makes sense that we diversify into renewables”. Sensible thinking, unless the union whallahs have a better idea. Not !!

    Most people with even a few brain cells will look at this news and think “So this is what reindustrialisation of Scotland will look like.??”

    • For your information the senior shop steward is a well known activist for the “NO Campaign” according to a statement issued by the SNP at the time so his comments which were made to coincide with a visit to Rosyth by Darling were clearly politically motivated.

      UK MOD orders are notorious for their ups and downs and consequent unreliability due to the fickleness of successive Westminster governments with our defences.

      By contrast there could be a long term sustainable future for Rosyth based upon orders from the oil, gas and renewable electricity generation industries, providing Scotland has a government that is prepared to give these industries the kind of political and economic support that gives them the confidence to invest in their long term future rather than the one we have at Westminster which is only interested in short term gain.

    • For your information the senior shop steward is a well known activist for the “NO Campaign” according to a statement issued by the SNP at the time so his comments which were made to coincide with a visit to Rosyth by Darling were clearly politically motivated.

      UK MOD orders are notorious for their ups and downs and consequent unreliability due to the fickleness of successive Westminster governments with our defences.

      By contrast there could be a long term sustainable future for Rosyth based upon orders from the oil, gas and renewable electricity generation industries, providing Scotland has a government that is prepared to give these industries the kind of political and economic support that gives them the confidence to invest in their long term future rather than the one we have at Westminster which is only interested in short term gain.

  2. Oh no, now we’ll definitly have to get the big boys in from London to look after all that money. Otherwise we’re doomed !!!

    It’s less than a week since the senior shop stupid from Rosyth was running round with No Darling telling the world the SNP were rubbish, they’ve done nothin’ and they’ll come to nothin’. That numpty must feel a bit of a nyaff tonight.

    Even the real gaffer of the Rosyth yard said on the news “The Royal Navy is not going to get any bigger, so it makes sense that we diversify into renewables”. Sensible thinking, unless the union whallahs have a better idea. Not !!

    Most people with even a few brain cells will look at this news and think “So this is what reindustrialisation of Scotland will look like.??”

  3. [url=http://www.fpif.org/articles/the_great_oil_swindle]The Great Oil Swindle[/url]

    [quote]Second, the report’s projected increase in “oil production” from 84 mbd in 2011 to 97 mbd in 2035 comes not from conventional oil, but “entirely from natural gas liquids and unconventional sources”—with conventional crude oil output (excluding light tight oil) fluctuating between 65 mbd and 69 mbd, never quite reaching the historic peak of 70 mbd in 2008 and falling by 3 mbd sometime after 2012. The IEA also does not forecast a return to the cheap oil heyday of the pre-2000 era, but rather a long-term price rise to about $125 per barrel by 2035.

    Finally, oil prices would be much higher if not for the fact that governments are heavily subsidising fossil fuels. The WEO revealed that fossil fuel subsidies increased 30 percent to $523 billion in 2011, masking the threat of high prices.[/quote]

  4. [url=http://www.fpif.org/articles/the_great_oil_swindle]The Great Oil Swindle[/url]

    [quote]Second, the report’s projected increase in “oil production” from 84 mbd in 2011 to 97 mbd in 2035 comes not from conventional oil, but “entirely from natural gas liquids and unconventional sources”—with conventional crude oil output (excluding light tight oil) fluctuating between 65 mbd and 69 mbd, never quite reaching the historic peak of 70 mbd in 2008 and falling by 3 mbd sometime after 2012. The IEA also does not forecast a return to the cheap oil heyday of the pre-2000 era, but rather a long-term price rise to about $125 per barrel by 2035.

    Finally, oil prices would be much higher if not for the fact that governments are heavily subsidising fossil fuels. The WEO revealed that fossil fuel subsidies increased 30 percent to $523 billion in 2011, masking the threat of high prices.[/quote]

  5. Anyone living in the North East of Scotland (as I do) will confirm that the Scottish oil gas sector has never been stronger. I have two sons and many friends who work in the industry and they confirm that oil and gas production in the North Sea and the Atlantic Continental Shelf has at least another 40 years of production. Why else would oil companies be building new offices all around Aberdeen like klondykers erecting tents in a gold field? Surely we will not squander a second chance to use oil and revenues to build a better Scotland?

  6. Anyone living in the North East of Scotland (as I do) will confirm that the Scottish oil gas sector has never been stronger. I have two sons and many friends who work in the industry and they confirm that oil and gas production in the North Sea and the Atlantic Continental Shelf has at least another 40 years of production. Why else would oil companies be building new offices all around Aberdeen like klondykers erecting tents in a gold field? Surely we will not squander a second chance to use oil and revenues to build a better Scotland?

  7. Latest Oil and Gas stats for 2012:
    http://www.oilandgasuk.co.uk/2012economic_report/industry_glance.cfm

    note, from the report:
    Employment is spread across the UK comprising:

    Scotland – 45 per cent
    South East England – 21 per cent
    North West England – 6 per cent
    West Midlands – 5 per cent

    Question for No or Yes Campaign:
    Currently SE England has a disproportionately large share of office based Oil jobs, where will they go post independence?

  8. Latest Oil and Gas stats for 2012:
    http://www.oilandgasuk.co.uk/2012economic_report/industry_glance.cfm

    note, from the report:
    Employment is spread across the UK comprising:

    Scotland – 45 per cent
    South East England – 21 per cent
    North West England – 6 per cent
    West Midlands – 5 per cent

    Question for No or Yes Campaign:
    Currently SE England has a disproportionately large share of office based Oil jobs, where will they go post independence?

  9. Dozens of fields are having their lives extended by decades. Several marginal fields are being reviewed once again. If an independent Scotland gave even marginal tax breaks and political finance stability then several fields would be developed.

    30/40 years of investment in the renewable industry would then give a stable future. The re-industralisation of Scotland is possible.

  10. Dozens of fields are having their lives extended by decades. Several marginal fields are being reviewed once again. If an independent Scotland gave even marginal tax breaks and political finance stability then several fields would be developed.

    30/40 years of investment in the renewable industry would then give a stable future. The re-industralisation of Scotland is possible.

  11. Really impressive performance by Blair Jenkins on STV just now. Catch it on STVplayer (or whatever they call it!)

  12. Really impressive performance by Blair Jenkins on STV just now. Catch it on STVplayer (or whatever they call it!)

  13. I would be more than happy with Blair Jenkins going head to head with Alistair Darling in key TV debates.

  14. I would be more than happy with Blair Jenkins going head to head with Alistair Darling in key TV debates.

  15. I have been impressed by Blair Jenkins since he was appointed, the problem is not everybody watches Scotland Tonight, Newsnight Scotland etc. As the debate intensifies and Blair gets more air time on ‘The Big Debate’ type programmes I have a feeling the YES vote will rise accordingly. I also think we need to make much more of Scotland’s resources. If people know that Scotland will not be an economic basket case and will in fact be similar to Norway, they will be much more inclined to vote YES.

    • [quote name=”Will C”] If people know that Scotland will not be an economic basket case and will in fact be similar to Norway, they will be much more inclined to vote YES.[/quote]

      That has to be the understatement of the year so far …!

      Yes get the message out.

    • [quote name=”Will C”] If people know that Scotland will not be an economic basket case and will in fact be similar to Norway, they will be much more inclined to vote YES.[/quote]

      That has to be the understatement of the year so far …!

      Yes get the message out.

  16. I have been impressed by Blair Jenkins since he was appointed, the problem is not everybody watches Scotland Tonight, Newsnight Scotland etc. As the debate intensifies and Blair gets more air time on ‘The Big Debate’ type programmes I have a feeling the YES vote will rise accordingly. I also think we need to make much more of Scotland’s resources. If people know that Scotland will not be an economic basket case and will in fact be similar to Norway, they will be much more inclined to vote YES.

  17. Oh dearie me, 40 BILLION invested in the Oil and Gas sector over the next 3 years. that disnae soond like an industry in decline tae me Jimmy.

    Between that and the Whisky boom – not to mention aw they renewables n that, Too WEE, Too POOR, Too STUPIT is richt oot the windae fur everybudy except a few blinkered eegits.

    VOTE YES Next Year

  18. Oh dearie me, 40 BILLION invested in the Oil and Gas sector over the next 3 years. that disnae soond like an industry in decline tae me Jimmy.

    Between that and the Whisky boom – not to mention aw they renewables n that, Too WEE, Too POOR, Too STUPIT is richt oot the windae fur everybudy except a few blinkered eegits.

    VOTE YES Next Year

  19. Unionists have been trying their best to remove oil as a weapon for the YES side of Independence. “prices are too volatile”, “not a lot left”, “running out”, and even “20% of Scotland’s GDP, you’re too dependent on one industry”, “it’s only 1% of the UK economy”.

    In forums any time anyone mentions oil, we’re mocked with “it’s oor oil”, and perhaps some Independence supporters have almost become afraid to mention it. Heedtracker in CiF excepted!

    Well, it [b]IS[/b] “oor oil”, and we’re taking it back. But not just in 2014 / 2016, but now. It’s a key argument FOR Independence and we need to make the most of it.

    As said, there’s more than half the revenue to come, and what a fantastic Scotland we can build with that amount of revenue. I agree – reindustrialisation is a very real prospect, one which is already happening even with the mention of independence.

  20. Unionists have been trying their best to remove oil as a weapon for the YES side of Independence. “prices are too volatile”, “not a lot left”, “running out”, and even “20% of Scotland’s GDP, you’re too dependent on one industry”, “it’s only 1% of the UK economy”.

    In forums any time anyone mentions oil, we’re mocked with “it’s oor oil”, and perhaps some Independence supporters have almost become afraid to mention it. Heedtracker in CiF excepted!

    Well, it [b]IS[/b] “oor oil”, and we’re taking it back. But not just in 2014 / 2016, but now. It’s a key argument FOR Independence and we need to make the most of it.

    As said, there’s more than half the revenue to come, and what a fantastic Scotland we can build with that amount of revenue. I agree – reindustrialisation is a very real prospect, one which is already happening even with the mention of independence.

  21. Blair Jenkins impressed on Scotland Tonight.
    Sometime soon a live head to head debate with Mr Darling should be on air. In fact these debates should be regular events covering specific areas of concern. Eg Welfare, economy, defense, NHS etc etc.

    I liked the viewer comment sent to STV which said something like, “Thank goodness BJ is not a politician…he’s far too honest and sensible for that.”

    The BJ / AD debate would be a fair old mix ‘n’ match. Mr Darling is a politician, (on his mothers side of the family I think), without any street sense.

    • Darling won’t go head to head with Blair Jenkins. I believe he has said that he won’t debate independence except with other politicians,

      I sincerely hope he is forced to face Jenkins further down the road, as he won’t have a hope of convincing anyone to vote No in the face of the rational arguments put forward by Jenkins,

      Without the ability to negatively smear politically Darling has no actual positive case for the union that would satisfy any ordinary folk who were not on the union gravy train.

      • Darling should be reminded that a debate between the Yes and No camps would be between two heads of campaigning groups and stop his high-and-mighty “I’m too good to talk with the hoi-polloi (especially the Scottish hoi-polloi), I’m a Westminster politician” act.

      • Darling should be reminded that a debate between the Yes and No camps would be between two heads of campaigning groups and stop his high-and-mighty “I’m too good to talk with the hoi-polloi (especially the Scottish hoi-polloi), I’m a Westminster politician” act.

    • Darling won’t go head to head with Blair Jenkins. I believe he has said that he won’t debate independence except with other politicians,

      I sincerely hope he is forced to face Jenkins further down the road, as he won’t have a hope of convincing anyone to vote No in the face of the rational arguments put forward by Jenkins,

      Without the ability to negatively smear politically Darling has no actual positive case for the union that would satisfy any ordinary folk who were not on the union gravy train.

  22. Blair Jenkins impressed on Scotland Tonight.
    Sometime soon a live head to head debate with Mr Darling should be on air. In fact these debates should be regular events covering specific areas of concern. Eg Welfare, economy, defense, NHS etc etc.

    I liked the viewer comment sent to STV which said something like, “Thank goodness BJ is not a politician…he’s far too honest and sensible for that.”

    The BJ / AD debate would be a fair old mix ‘n’ match. Mr Darling is a politician, (on his mothers side of the family I think), without any street sense.

  23. And there was me thinking we’d only a few buckets of oil left in the North Sea.And that the price was going to slump so far no one would be bothered to extract it.Wonder where I got that idea from.

  24. And there was me thinking we’d only a few buckets of oil left in the North Sea.And that the price was going to slump so far no one would be bothered to extract it.Wonder where I got that idea from.

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