Need to Create 8,000 Job Places in North Sea Oil

• 03.13.2015, 17:23
•  Europe,  World

Reduction of oil and gas prices in the market has caused damages to thousand of oil producing companies over the world. Despite the looses, the UK oil and gas companies expect to create 8,000 jobs in the next two years, BBC reports.

According to the survey of a Bank of Scotland, 39 percent respondents have the opinion that the oil falling prices affected investment. On the other hand the estimation of net job gains and losses show that there is a need of 8000 new job places to be created. The same estimation for last two years showed 10,000 more jobs to be created. There is a fear that the oil price fall can cost 35,000 jobs in the oil industry in UK. British Petroleum in January was going to cut 300 North Sea jobs.

In order to survive in the market with so low prices the companies in oil and gas business express an interest on mergers and acquisitions. The numbers of companies that are on this way are 24 percent, other than 9 percent for last year.

The oil production became non beneficial, because the cost of oil production has risen while the prices have fallen by half. The other method that companies can survive in the current situation is product diversification. For instance the alternative opportunity can be onshore shale gas and renewable energy production, which had doubled since 2014.

Under the pressure of oil price fall can survive only OPEC countries where the production cost is very low. Non-OPEC countries face high cost of production, fears to loose jobs, less revenue and proportionally less gains. And UK North Sea oil production is one of them.