We’re all acutely aware of the challenges which face the oil and gas sector right now – many of you reading this article will be either directly or indirectly affected by the marked and sudden reduction in the oil price and the subsequent impact on the sector.
We estimate that over 5,000 jobs have been announced as being lost or at risk. While we know that the oil price fall has brought the sector into sharp focus, the current situation is as much about regeneration and readjusting our cost base.
That’s why in January this year Scotland’s First Minister, Nicola Sturgeon, announced the creation of a taskforce to help tackle not just the immediate impact of the volatile oil price but also the pressing need for the industry to evolve, transform and modernise.
Since the creation of the taskforce, we’ve met monthly and the early focus has predominantly been on ensuring the right support is reaching the right companies and individuals.
There’s been a huge effort across the taskforce to encourage flexible approaches to employment to help retain vital talent and where needed to support employers and ensure every individual displaced or at risk of redundancy is able to access all of the options and outplacement support available to help them move forward into employment, new ventures, training or education.
While it has been mainly the operator and contractor parts of the industry that have felt the greatest impact so far, we are very aware that the affect on the supply chain is still to be felt fully. We anticipate further challenging news and will be extending further support where needed.
We’ve an extensive action plan and programme underway to provide support and information through a range of channels, including events which aim to help people start up in business and support for the supply chain in areas such as financial resilience, international opportunities and leadership development.
The industry has been here before. It may be different from previous downturns but there is resolute resilience within our company base and determination to see through the difficult times.
No one wants to make anyone redundant – it has to be seen as the very last resort – but it is also clear that the current difficult decisions which sadly some companies are having to undertake are being taken in order to ensure the long term-sustainability of the industry in Scotland.
I’ve spent as much time as possible talking to companies to make sure no stone is left unturned to capture a clear picture of the challenge and opportunity.
We will continue to drive forward our ambitious action plan and become a catalyst for positive change to make sure everything possible is being done to safeguard jobs and retain talent.
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