Representatives of the UK’s beleaguered subsea industry are taking their plight to Westminster tomorrow to urge policy makers to do everything they can to protect the sector.
Industry body Subsea UK will lead the delegation, which will include leaders from 30 oil and gas supply chain businesses, at a Parliamentary Reception on Wednesday.
The occasion comes as the trade body recently revealed that the sector has shed around 5,000 jobs and income has plummeted along with the falling price of oil.
A separate report, by another trade body, Oil & Gas UK, predicted around 120,000 oil and gas job will have been lost by the end of 2016
Neil Gordon, Subsea UK chief executive,said: “This is having a major impact on the £9billion sector which previously supported around 53,000 jobs and contributed significantly to the country’s balance of trade with over £4billion in export revenues.
“The good news is that our subsea businesses are continuing to invest in research and the development of new technology which is vital to maximising economic recovery in the North Sea, prolonging its life and allowing UK plc to get more value from the basin.”
Mr Gordon added: “We need our political leaders to understand the importance of the sector and the challenges it’s facing. Investing in and supporting the sector is not just about the North Sea, it’s about protecting our globally recognised supply chain and its ability to drive up UK exports, safe-guarding and creating jobs in the longer term.
“Our ask is very clear. We urgently need government support and funding for R&D, greater incentives that will stimulate exploration in the North Sea, including models for exploiting the smaller, currently uneconomical pockets of hydrocarbons and increased, focused support for maintaining and increasing our export potential.
“We hope the Government will recognise the importance of our sector and the thousands of jobs we support up and down the country. Until the oil price collapse, subsea was one of the fastest-growing industries in the UK, with a world-leading position.
“This position is now under threat unless we can sustain our supply chain, develop and commercialise the next wave of underwater technologies required to exploit our hydrocarbon and renewable resources around the world, and ensure we are creating and enthusing the next generation of subsea engineers.”
Businesses expected to attend the event include Apache, Bibby, Ashtead Technology, BP, Infield and the Society for Underwater Technology.
Callum McCaig, Aberdeen South MP and the SNP’s shadow energy leader, said he hoped his government counterparts will “prioritise listening to” the group.
He said: “The SNP is aware of the incredible challenges facing the subsea sector in the current low oil price climate. The type of investment we have been pressuring the Westminster Government to provide would suit the crucial research and development undertaken to allow exploration and drilling to continue, and extend the life of the North Sea and revenues within it. Subsea companies could hugely benefit from that, and from financial assistance being easier to access, which only Westminster has the power to enable.”
Alexander Burnett, Scottish Conservative Energy spokesman, said: “The industry, and indeed the region, is in the midst of a very challenging period and I know from my conversations with senior ministers that this government is aware of the importance of the sector and receptive to new ideas to help boost investment and exploration in the North Sea.”
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