THOUSANDS of new jobs are expected to be created in the UK oil and gas industry in the years ahead, giving a boost to the north of Scotland.
This emerged in a report on the energy business out today from Lloyds Banking Group.
Three-quarters of firms hope to take on new workers in the next two years, with 28% aiming for a major employment push by recruiting more than 500 staff.
A hundred decision-makers from various sectors of the UK oil and gas industry were interviewed for the study. More than 80% anticipated increasing orders through the supply chain next year as the ripple effects of handling more business are felt throughout the industry.
Lloyds Bank Corporate Markets estimates that just a 3% rise in order values from oil and gas companies would result in a further £398.4million in revenue for the supply chain next year.
Oil and gas companies are also embracing the green economy.
According to Lloyds Bank Corporate Markets, 26% of firms in the industry have already created a new income stream through renewables, and the number of oil and gas businesses adopting “green” income streams will jump to a third by the end of 2012, and to 55% in the next three-five years.
Alasdair Gardner, managing director for Lloyds Bank Corporate Markets in Scotland, said: “The net result of larger contracts and more orders for products and services is more jobs.
“Oil and gas companies already know they will need more capacity to handle the extra business coming their way next year and that is heartening news for the economy and for the jobs market. The strategic importance of Aberdeen as an oil and gas centre of excellence should translate into jobs in the north of Scotland, particularly.
“While market consolidation and technological innovations are creating new opportunities for oil and gas companies at home, emerging markets around the world are now realising their potential – so growth in the sector will come in many guises.”
Aberdeen mechanical engineering group EnerMech currently employs around 800 people.
Managing director Doug Duguid said: “We have been recruiting heavily in 2011 and have already doubled the size of our workforce. The findings of this report reflect our experiences and we certainly count as one of the companies expecting growth next year.
“We want to create more jobs – the issue is finding the skilled staff we need to meet demand for our services. We are recruiting skilled workers for all our service lines in the offshore industry, but some disciplines are difficult to find – for example the number of hydraulics and valve technicians available in the marketplace is not high. The industry must put a focus on training and apprenticeships if we are to meet the full potential suggested in this report.”
Lloyds Bank Corporate Markets has also revealed that in 2011 it provided more funding to the oil and gas sector than any other, including Wood Group’s £606million acquisition of smaller rival and fellow Aberdeen company PSN.
A spokesman for the first minister said: “This is a very welcome report, underlining Scotland’s broad-based energy resources.”
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