UK Oil and Gas Activity Supports Over 200K UK Jobs, According To OEUK Report
Posted 07/09/2023 13:47
Domestic oil and gas activity in the UK supported approximately 220,000 jobs in the country last year, according to a report by industry body Offshore Energies UK (OEUK). The report stated that about 133,000 of these jobs were direct and indirect positions within oil and gas companies and the supply chain.
The oil and gas sector's impact extends beyond its regional hubs, with a further 86,000 jobs induced in regional economies due to the sector's presence. These jobs encompass various sectors such as hospitality, retail, and services.
OEUK's report highlighted the contributions of the oil and gas industry to the UK economy, stating that it generated nearly £30 billion (approximately $37.3 billion) in gross value added (GVA) in 2022. Of this, over £23 billion (around $28.6 billion) was generated directly and indirectly by oil and gas companies and the supply chain. Additionally, over £6 billion (about $7.4 billion) was induced by activities in communities across the UK, thanks to the sector's direct and indirect benefits.
The report emphasized that every £1 ($1.25) of oil and gas expenditure led to £2.30 ($2.87) in value-added across the economy, making the sector highly productive and instrumental in stimulating wider economic growth.
OEUK's CEO, David Whitehouse, stated that the domestic oil and gas sector had played a crucial role in powering the UK for the past 50 years. He also stressed the sector's commitment to align with the UK's net-zero ambitions and the importance of supporting both oil and gas and renewable energy.
The UK's North Sea Transition Authority (NSTA) reported a three percent reduction in greenhouse gas emissions from offshore oil and gas production in 2022, marking the third consecutive year of reductions. This progress aligns with industry efforts to achieve net-zero emissions by 2050. However, more significant measures will be necessary to achieve the goal of halving emissions by 2030.
OEUK's Sustainability and Policy Director, Mike Tholen, commended the industry's emissions progress but emphasized the need for additional investment and long-term energy policies to meet the targets of halving emissions by 2030 and achieving net-zero emissions by 2050.
Tholen also highlighted that oil and gas would still provide 50 percent of the UK's energy needs by the mid-2030s, emphasizing the importance of sustainable domestic production to ensure energy security and reduce the carbon footprint.