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Oil and gas
The UK is increasingly being seen as a global centre for the oil and gas industry, and is known as the upstream industry. The industry employs 185,000 employees of which 30,000 are directly employed in oil and gas exploration and production; and 155,500 as contractors to the industry or in the supply chain. Exploration and production companies range from small independents through to majors and super majors. The UK is ranked the fourth largest gas producing country and the tenth largest oil producer in the world.
In 2003, the oil and gas industry contributed 13% of total gross value added (GVA). The UK has been self-sufficient in oil for more than two decades and is expected to remain so until around 2010 although the UK is now a net importer of gas. However due to the high oil price the oil and gas industry in the UK is currently in a period of expansion withi increased exploration and appraisal activities. The sector does have a long term future and also has an ongoing requirement for new recruits to replace those going to work in international operations and those who retire in addition to the current expansion demand. In 2020, the UK could still be producing 65% of its total oil requirements.
There is a strong skills base that has developed over the last two decades which has attracted many overseas companies to the UK. The industry is primarily located in the North East of Scotland, Shetland, the East of England, South East of England and the North East of England. The skills base within the UK also means that UK based companies are competitive in the international market providing products, services and employment to the international oil and gas industry’s operations.
The oil and gas industry is subject to cyclical employment trends so many experienced professionals leave the industry or the country seeking further opportunities or security. Currently, as the oil price is high, the industry is experiencing a period of increased investment and activity meaning that the overall workforce demand has risen.
Key messages about the sector influencing future trends:
- oil provides 32% of the UK’s primary energy demand and 99% of the UK’s transport energy
- oil is an essential component of products as diverse as toothpaste, medicines, plastics, fertilizers, shampoo, fuel and building materials
- recent estimates suggest that at current demand levels there are sufficient proven global reserves of oil to last for at least 40 years
- oil industry is directly important to the national economy – it contributed £5.3 billion in taxation in 2004 and is expected to increase in 2005
- the oil industry is reducing its effect on the environment and oil products are getting cleaner
For future trends and challenges in the industry go to Future drivers in the sector and its industries. ((internal link to section below))
Skill shortages are currently being experienced for: floormen, riggers, scaffolders, geoscientists, engineers of all disciplines and specifically reservoir engineers and subsea engineers.
Source: Cogent website 2006, Cogent Skill Needs Assesment 206, UK Offshore Operators Association 2005a and UK Offshore Operators Association 2005b
Click here for details on the workforce profile and dimensions of equal opportunities.
For more information on oil and gas activity in the UK see the UK Offshore Operators’ Association Limited 2004 Activity Survey. For more information on the regional workforce profile see:
Last cached: 2008-06-04 10:01 PM