Contribution to the UK Economy

Employment

The UK is increasingly being seen as a global centre for the oil and gas industry. It is home to a wide variety of Exploration and Production (E&P) companies ranging from small independents through to majors and super majors, primarily centred on the North East of Scotland and the South East of England. Many foreign E&P companies have now adopted the UK as their base for European, African or world-wide operations, recognising the strong skills base that has developed here over the last two decades. Contractors, manufacturing and service companies across the UK have now built international businesses supporting the global oil and gas industry, founded on their North Sea experience.

The UKCS provides employment for around 260,000 with 30,000 directly employed by E&P companies and 155,000 as contractors to the industry or in the supply chain. An additional 75,000 induced jobs are sustained through the investment and wages from the industry. Employment overseas and export of international goods/services further boosts the total numbers employed through our industry.

Employment from the upstream oil and gas industry extends across the UK, though it is concentrated in north-eastern Scotland, the Orkney and Shetland Islands, the east coast of England, London and South-East England. Almost two-thirds of the 30,000 jobs directly related to the oil and gas industry, are located in Scotland followed by London and the South East (15% combined). When total employment is considered including direct employment, indirect employment of contractors and the supply chain, and induced jobs, Scotland has the largest share of employment (32%) followed by London and the South East (25%) and Yorkshire and the Humber (8%). Sustained employment is a direct consequence of continuous investment in the UKCS. Currently, around 33 jobs are required by each £million spent in capital and operations.

Figure 8: Employment Impact of the UKCS Oil and Gas Industry