Following a survey of its membership the figures were published in The Business Outlook: Activity and Supply Chain report, which calls for urgent action to protect companies in the industry facing a struggle to survive the combined challenges of the coronavirus pandemic and a 20 year low in oil prices.
A proposed three-stage framework to support the sector in dealing with the immediate crisis while positioning it to play a key role in the UK’s transition to a net zero future, covers immediate needs, industry recovery and accelerating to a net zero future. As part of this a recovery group of experts will focus on opportunities with short to midterm impact, with a view to stimulating much needed fresh activity for supply chain companies.
OGUK chief executive Deirdre Michie said; “Like so many industries, our members have been profoundly impacted by COVID-19. 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 industry. 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.”
Katy Heidenreich OGUK operations director, added; “Our recovery plan will not only look at how we can support the oil and gas industry through improving our competitiveness, it will also look at how we can use this as an opportunity to position ourselves as an incubator for net zero projects.
“With extensive skills, capabilities and experience, it’s clear our sector will continue to play an important role in meeting as much of the UK’s oil and gas needs from domestic resources, while also shaping up to play an even bigger role in delivering the UK’s net zero ambitions.”