Economic Report 2000 Index

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Contribution of the Offshore Oil and Gas Industry to the United Kingdom Employment The latest UKOOA data show that 270,000 jobs were supported by the offshore oil and gas industry in 1999 with a gradual upturn in exploration and investment activity indicated by the end of 2000. Industry employment in Scotland represents 7% of total employment. If capital expenditures increase as projected towards £4 billion in 2001, this could increase the number supported by the industry up to some 300,000 jobs. Employment most likely to benefit will be in the drilling and sub-sea well-head construction sectors. Approximately 10% 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. The largest concentrations of oil and gas related employment are in the environs of the North East of Scotland, Highlands and Islands and the gas terminals on the East Coast of England. These regions are the homes of the ports and terminals where oil and gas come ashore, as well as the major construction and fabrication yards which supported the first and second generation of UKCS development and production. 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 Figures 5 and 6. Figure 5 - Employment map Figure 6 - Where the 270,000 jobs are