Oil sector job losses to hit 120,000

The industry body estimates that 84,000 jobs linked to the industry went in 2015 and it still expects a further 40,000 to go this year.

It said the offshore industry supported 453,000 jobs at its 2014 peak - either directly, in its supply chain or in trades such as hotels and taxis.

The analysis, which was carried out by marketing services company Experian, suggest this number is likely to fall to 330,000 jobs by the end of 2016.

The projections follow news last week that the Bank of Scotland/Lloyds Banking Group had found that a third of UK oil and gas businesses it had surveyed plan to cut jobs further during this year.

Many companies have been struggling under the weight of a sustained fall in the price of oil.

Brent crude is currently trading at about $50 a barrel, less than half the price it was in 2014 when jobs linked to the sector peaked at over 450,000.

Oil & Gas UK chief executive Deirdre Michie said: “The industry has been spending more than it is earning since the oil price slump towards the end of 2014.

“This is not sustainable and companies have been faced with some very difficult decisions.

“To survive, the industry has had no choice but to improve its performance.

“It is looking to find efficiencies to restore competitiveness, to attract investment and stimulate activity in the North Sea.

“With up to 20 billion barrels of oil and gas still to recover, this region is still very much open for business.”

Oil & Gas UK is due to hold its annual conference in Aberdeen next week to consider how it manages its way through the current downturn.

Ms Michie added: “The interventions we make now will be critical to shape the industry’s direction and help stem future losses.

“Everyone in the sector can play a part. Effective workforce engagement is vital onshore and offshore, as is greater cooperation - within teams, within companies, across the industry and with the regulators and governments.”