North Sea workers are to vote on industrial action over jobs, pay and shifts after showing strong support for a ballot.
Members of Unite and the GMB have given the go-ahead for an official ballot, which the unions warned could see a North Sea strike for the first time in a generation.
Unions say thousands of jobs have been lost since the slump in oil prices, while firms are proposing changes to shifts, pay and holidays, despite help for the industry in last week’s Budget.
Members of both unions voted in a consultative ballot heavily in favour of having a vote on industrial action.
The fall in the oil price these last few months has been a big help for anyone who drives a car and pays an energy bill.
But I know that for the north-east that boon has come at a price.
Last year, Sir Ian Wood, Aberdeen’s most successful businessman, left us in no doubt about the dangers facing the oil and gas industry in the north-east.
It meant that, when I was preparing my Budget over the winter weeks, I knew full well that the country could not afford to sit idly by and watch one of our great British industries find itself in even deeper peril.
Sales from Scotland’s oil and gas supply chain grew by 11% in 2013/14, new figures show.
The sector recorded sales of about £7 billion through international subsidiaries, up from £6.3 billion in the previous financial year.
Direct exports from Scotland also grew by 13% over the same period, reaching a total of £4.2 billion, according to figures from Scottish Enterprise.
Combined international sales for Scottish-based supply-chain companies was up 12% to an estimated £11.2 billion while domestic sales rose from £9.9 billion to £11 billion.
David Rennie, Scottish Enterprise’s international sector head for oil and gas, said the survey showed the importance of the industry to the Scottish economy but acknowledged it faces a challenging future.
This week's top story was the news that Centrica held a "hackathon" for oil and gas contractors.
The event was aimed at looking how to reduce the costs for projects that are currently stuck in the pipeline.
The term is more usually used for gatherings of software developers and programmers, where they get together to look at problems and figure out how to solve them.
Meanwhile Shell also revealed that it would be making job reductions as well as potential shift pattern changes.
The UK’s new energy industry regulator, the Oil and Gas Authority (OGA), yesterday insisted it was ready to become an executive agency on April 1 as planned.
Oil and Gas UK (OGUK) chief executive Malcolm Webb had earlier suggested the fledgling watchdog had decided to delay the move, which will let it start fulfilling its role formally, for some months.
The establishment of a strong and well-funded regulator was one of the recommendations made in last year’s Wood Review, which made a series of proposals aimed at maximising the recovery of UK fossil fuels.
An oil worker has passed away after becoming unwell at the Shetland Gas Plant (SGP).
An oil worker has passed away after becoming unwell at the Shetland Gas Plant (SGP).
The 61-year-old, who worked for services company Petrofac, said the man had become unwell on site and was taken to Bain Hospital in Lerwick before being transferred to Aberdeen Royal Infirmary.
A Petrofac spokeswoman said: “We can confirm that a Shetland Gas Plant worker sadly passed away today (Thursday 26 March 2015).
Oil major Shell will reduce the number of staff and agency contractors working on its North Sea operations by 250.
The company said it would be making a number of changes to both staffing numbers and shift patterns.
It is not yet clear how many staff and contractors specifically will be affected.
There is an urgent need to cut the accident rate among helicopters working in the global oil and gas industry to at least the level of mainstream commercial airlines, an aviation “summit” in Canada has heard.
This was the core message of Mark Stevens, chairman of the aviation sub-committee at the International Association of Oil and Gas Producers (IOGP), on day two of the 2015 CHC Safety & Quality Summit in Vancouver.
Mr Stevens said there were 406 helicopter and 71 fixed wing accidents over the period 1998-2014, killing 502 and 171 people respectively.
The oil and gas industry is continuing to ride a wave of challenges but it seems over the last year or so, the whole industry, has recognised the changes in the health and fitness of the offshore workforce.
It is no surprise that the recent research by Robert Gordon University has indicated the body shape of offshore workers has changed with increases in weight and height, prompting industry groups to implement new processes and safety standards, which Falck wholeheartedly supports.
As an offshore safety training and occupational health provider, we work very closely with delegates in terms of training and also on the healthcare side, so we are one of the first to notice changes in people’s body shape and actively try to advise delegates on health matters that could impact their job.
Oil major BP is expected to sign a deal with the Trans-Anatolian Natural Gas Pipeline (TANAP) project within the next few months.
According to reports the move is in a bid to lessen its reliance on Russian gas.
BP country manager in Georgia, Chris Schlueter, said the deal was “very, very close” with good progress over the past week.
According to reports the move is in a bid to lessen its reliance on Russian gas.
The “welcome and long-awaited” oil and gas tax measures unveiled in the Budget will help drive new investment in North Sea exploration and production, the boss of Aberdeen firm Plexus Holdings said yesterday.
Plexus stands top gain from the tax cuts and incentives announced by Chancellor George Osborne last week, Ben van Bilderbeek, the oilfield technology company’s founder and chief executive, added.
Particularly helpful is the new cluster allowance to support the development of high pressure, high temperature (HP/HT) projects and encourage exploration and appraisal activity nearby, he said.
History will say whether Budget 2015 will be the end, or the continuation, of George Osborne’s drive to eliminate the UK’s deficit with a resultant reduction in national debt and a lessening of red tape.
Across the energy sector, all eyes were on the widely anticipated tax reductions and incentives. The history of UK oil and gas will judge whether Budget 2015 was “just enough” or an opportunity missed.
Last Wednesday’s announcements were partly expected and all welcome. The £1.3bn headline “tax giveaway” is all well and good. But this £1.3bn is arguably modest, and is the aggregate “tax reduction” over five years. More important than the headline, is the impact the measures will have on investment decisions.
More must be done to attract young people and women to work in Scotland’s energy industry, a new report concludes.
Attracting new entrants will be key to ensuring the future of the country’s oil, gas and renewable sectors, according to Skills Development Scotland (SDS).
It has published an updated skills plan for the industry, setting out priorities for developing the workforce against the backdrop of a fall in oil prices.
Oil explorer Afren has called in the SFO (Serious Fraud Office) following concerns raised over expense payments.
The company said the issue focused on the hiring of an individual “within its operations in 2012 and the payment of certain travel and accommodation expenses connected to Afren’s activities”.
Afren notified bondholders of the findings by law firm Wilkie Farr and Gallagher’s.
About 100 oil and gas industry contractors are today taking part in what the host, Centrica Energy, has described as a “hackathon” of ideas aimed at reducing the costs for projects that are stuck in the pipeline.
The term is more usually used for gatherings of software developers and programmers, where they get together to look at problems and figure out how to solve them.
Centrica Energy hopes today’s event in Aberdeen will deliver new ways to approach some of its oil and gas projects, using new technologies which “might make the difference” between them going ahead or not in the currently difficult operating climate for North Sea firms.
An Aberdeen company's expansion to Houston in the US is just another example of the strong links between the two cities, the UK Government's representative in Texas says.
Consul-general Andrew Miller was speaking during a trip to the Granite City, leading a 14-strong delegation from America's oil capital for the third annual Aberdeen-Houston Gateway event.
Following a visit to electrical product and service provider AEL, which opened its Houston office last year, Mr Miller said: "It is another great example of a well-established Aberdeen company which is capitalising on the business links and synergies which exist between its home city and fellow global energy industry hub, Houston.
Two experienced industry figures have been appointed to the board at Aberdeenshire energy service firm Paradigm Drilling Services in the wake of a £5million investment in the business.
Nicholas Gee and Mike Hill have become directors at the drilling and intervention technology company following the injection of capital by Buckthorn Partners and Saudi Aramco Energy Ventures (SAEV), the corporate venturing subsidiary of Saudi Aramco.
Mr Gee, a former executive vice-president of strategy and development at Weatherford International, reprsents Buckthorn on the board. Mr Hill, who has over 17 years' investment experience in the oil and gas sector, represents SAEV.
German utility E.ON was staying silent about the future of its North Sea oil and gas interests last night after a report said the company was making plans for an exit.
A spokeswoman said she could not comment on speculation, and there would be no announcement of any kind until the conclusion of a strategic review launched by the firm late last year.
In November, Dusseldorf-based E.ON unveiled plans to split in two and spin off most of its conventional power generation, energy trading and oil and gas exploration and production (E&P).
“Necessity is the mother of invention.” So the saying goes and so it is true that crises can stimulate creative thought and challenge established norms in a way that seems difficult to achieve when all is calm and ticking over.
In calmer waters thinking reverts to ‘continuous improvement’ and its promise of a more steady and paced level of delivery. With a familiar sigh of relief, comfort levels are restored and with it the pressure to challenge deeply held beliefs and working practices. So how is all this relevant to $60 oil?
The answer is simple: The industry has an opportunity to make a real difference, to capitalise on a situation that is marked by great uncertainty but equally offers boundless possibility. It is a straight choice – the industry has only to give itself permission to frame it in terms of the latter.
As the 2015 General Election approaches, the North Sea oil and gas industry has become a key focus for politicians.
The government recently outlined a raft of measures to support the sector, dropping the supplementary charge from 30% to 20% and decreasing the Petroleum Revenue Tax (PRT) by 15%.
Representatives from Liberal Democrat, Labour, Conservative and SNP will be taking part in a special panel session in Aberdeen centered around the energy industry and what politicians can do to support it.
The Chief Secretary to the Treasury visited Aberdeen as new powers for the OGA (Oil and Gas Authority) were unveiled.
The move comes just days after the budget which say the supplementary charge dropped from 30% to 30% as well as a decrease in the PRT (Petroleum Revenue Tax).
Speaking to Energy Voice at ASCO, the politician said the changes reflected The Wood Review 'Call for Evidence', which was set out in Autumn last year.
Today,March 20, is apparently the international day of happiness, inaugurated by the United Nations in 2012! Does the oil and gas sector share that happiness after the end of an eventful week?
The start of the week saw a clarion call from Sir Ian Wood for the Chancellor to act decisively in reforming the North sea fiscal regime. Without decisive action Sir Ian warned of job losses of up to 100, 000 as the industry continues to struggle to come to terms with the oil price slump.
A backdated tax cut? Am I dreaming? The Budget was good news indeed.
Proclaiming eternal life for the UKCS was always above the Chancellor’s pay grade, but George Osborne’s headlines certainly help.
The devil will be in the detail, and no doubt there will be some surprises (and I’m not talking of a winter fuel allowance for 4x4 drivers).
Beyond his party’s faithful, for George Osborne the question is has he given enough to get your cross at May’s General Election?
Before we declare a National George Osborne Day, let’s see how it pans out. Like an Easter Egg, this budget is definitely chocolate on the outside.
