Economic Report 1999 Index

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Employment The first comprehensive industry employment study conducted by Public and Corporate Economic Consultants (PACEC) using official data from 1995, estimated that 382,000 jobs were supported by the offshore oil and gas industry. The latest industry data show that 359,000 jobs were supported in 1997; with the reduction of investment activity the current estimate is that some 300,000 jobs are supported by the industry and these could decline to as low as 200,000 in 2002, unless the pace of the current downturn in exploration and development spending can be arrested. Jobs most affected are expected to be in the fabrication, construction and drilling sectors. Approximately 10 percent of oil related jobs are offshore, working on or servicing the oil and gas installations, but the majority of jobs are those which are created directly by the spending and the investment patterns of the industry. Figure 5 - Employment Map Source:  PACEC The largest concentrations of oil and gas related employment are the Highland and Grampian regions of Scotland and the East of England. Industry employment in Scotland represents 7.1% of total employment. These regions are the homes of the major construction and fabrication yards as well as the ports and terminals where oil and gas come ashore. However the importance of the oil and gas industry is not confined to these areas since there are oil related jobs in some 6000 companies located in almost every part of the country as illustrated in Figure 6. Figure 6 - Regional Jobs Pie-Chart Source:  Cogent and PACEC