UK’s North Sea – Job losses raise skills and safety concerns

Cost-cutting in Britain’s North Sea oil and gas sector could lead to more acute skills shortages in future, industry experts have warned, with some expressing concerns that safety could be compromised.

A plunge in crude prices over the last 12 months has prompted oil majors such as Royal Dutch Shell, BP , Chevron and ConocoPhillips to lay off hundreds of workers.

Oil field services groups such as Amec Foster Wheeler , Wood Group and Petrofac are also in consultation with employees over job cuts.

“We have seen a lot of panicking,” said Alastair Cole, a director at Spencer Ogden, an energy recruitment agency. “We’ve seen some very quick decisions made to balance the books in the short term, and there’s going to be a big gap in the future.”

A report published in February by Britain’s Oil and Gas Authority found that firms had significantly reduced staffing levels and contractor rates.

“The (cost-reduction) programmes should recognise the risks of potentially losing key skills and expertise required for the future. Great care must also be taken to avoid adverse impacts on safety, the environment and maintenance programmes,” it said.

Many experienced older workers are also opting to hang up their wrenches in favour of early retirement, just as ageing platforms need more specialist care and attention.

“Not only do we have installations that have been out there 20 or 30 years, but many of these installations also have a significant number of people on them who have been there from the beginning. So knowledge transfer is an issue,” said John Wishart, president of Lloyd’s Register Energy.

Chosen excerpts by Job Market Monitor. Read the whole story at Job losses in UK’s North Sea raise skills and safety concerns | Reuters.

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