Preparing to survive

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Oil and gas CEO Deirdre Michie said that since the oil price slumping and to the end of 2014 firms have been spending more than earned.

There is no choice but improve the industry’s performance and face difficult decisions.

According to Bank of Scotland and Lloyds Banking Grope a third of oil and gas businesses are planning cutting jobs at least during this year.

It is estimated that at about 120.000 jobs could be lost by the end of 2016.

Surely not only oil and gas industry has been affected by falling prices.  There are a lot of jobs linked to the industry. Offshore industry supported 450.000 jobs before new times coming. Now it could be expected that 40.000 of this kind of jobs will be lost before the end of this year.

A lot of companies which have been prosperous a couple of years ago now are struggling to survive.

Brent crude’s price is currently about $50 per barrel and that is half the price it was in 2014.

To survive oil and gas companies must restore competitiveness and attract investment to increase activity in the North Sea. That is what they are trying to do right now.