Introduction. Oil & Gas UK s Economic Report 2017 is available to download at
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1 LABOR WORKFORCE MARKET REPORT 217
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3 WORKFORCE REPORT Introduction This publication expands on the industry employment data published within Oil & Gas UK s Economic Report It provides more detail on the total employment supported across the whole upstream industry, both onshore and offshore, and draws on Vantage Personnel On Board data to look exclusively at the breakdown of the offshore workforce. 1 Oil & Gas UK s Economic Report 217 is available to download at The UK Oil and Gas Industry Association Limited (trading as Oil & Gas UK) 217 Oil & Gas UK uses reasonable efforts to ensure that the materials and information contained in the report are current and accurate. Oil & Gas UK offers the materials and information in good faith and believes that the information is correct at the date of publication. The materials and information are supplied to you on the condition that you or any other person receiving them will make their own determination as to their suitability and appropriateness for any proposed purpose prior to their use. Neither Oil & Gas UK nor any of its members assume liability for any use made thereof. 3
4 WORKFORCE REPORT Key Findings Employment Latest estimates show that the UK offshore oil and gas industry continues to support more than 32, jobs. The 3,-plus jobs are spread across the country, with almost 6 per cent in England, 38 per cent in Scotland and the remainder across Northern Ireland and Wales. This latest employment estimate is 16, lower than the peak of more than 46, jobs in 214. The pace of contraction in employment has, however, slowed considerably to 4.2 per cent between , compared with 15.6 per cent from and 19.4 per cent from Offshore Demographics More than 52, people travelled offshore in the UK in 216, back in line with the long-term trend seen before 212. The core offshore workforce (those spending more than 1 days offshore per year) decreased by 18 per cent from , from 28,99 to 23,651. The largest number of offshore workers are in the central North Sea (22,739), which reflects the higher level of activity in this area. The west of Shetlands region has seen greatest growth in offshore employment, more than doubling since 214 to 4,34 offshore workers last year. As the UK Continental Shelf (UKCS) becomes more efficient, productivity has improved with a 42 per cent increase in oil and gas production per core offshore worker since 214. The average age of offshore workers has increased to 42.7 from 4.7 in 214. Around 15 per cent of the offshore workforce are non-british citizens, around half of whom are from the EU. 4
5 3. Graphs Figure 1: Employment Supported by the UK Upstream Oil and Gas Industry Direct 36,6 41,3 37,3 29,5 28,3 Indirect 198,1 26,1 163,1 15,6 141,9 Induced 26,2 216,5 173,4 135,3 132, 44,9 463,9 373,8 315,4 32, , Employment Supported by the Upstream Oil and Gas Industry 45, 4, 35, 3, 25, 2, 15, 1, Direct Induced Indirect The latest employment estimate is around 16, lower than the peak of more than 46, jobs in 214 5, Source: Experian 5
6 ECONOMIC WORKFORCE REPORT Figure 2: Employment by Region West Midlands, 5% Yorkshire and Humber, 6% East Midlands, 5% East of England, 5% North West, 6% Greater London, 1% South West, 6% North East, 3% Northern Ireland, 2% South East, 1% Wales, 3% The oil and gas supply chain spans the length and breadth of the country Note: Percentages do not add up to 1 due to rounding Scotland, 38% Source: Experian Figure 3: Supply Chain Employment Impact by Industry (top 15, by number of jobs) Other Manufacturing, 2% Construction of Buildings, 2% Civil Engineering, 2% Computer and Electrical Products, 1% Wholesale, 3% Machinery and Equipment, 4% Rubber, Plastic and Other Non-Metallic Mineral Products, 4% Computing and Information Services, 4% Retail, 4% Finance, 3% Other Industries, 25% The value oil and gas activity creates in other sectors demonstrates the vital role the sector can play in the UK Government s Industrial Strategy Land Transport, Storage and Postal Services, 5% Professional Services, 14% Specialised Construction Activities, 5% Administrative and Support Service Activities, 11% Metal Products, 11% Source: Experian 6
7 7, 6, Figure 4: Core 2 and Non-Core Offshore Personnel Core Non-Core The total number of offshore workers fell to around 52, last year, 45 per cent of whom spent more than 1 nights offshore Number of Personnel 5, 4, 3, 3 2, 1, Source: Vantage POB Figure 5: Personnel Travelling Offshore for Operators and Contractors 7, 6, Operators Contractors Over three-quarters of the offshore workforce are employed within the contractor community (non-exploration and production companies) Number of Personnel 5, 4, 3, 2, 1, Source: Vantage POB 2 Core personnel are those who spend more than 1 nights offshore in a year. 7
8 WORKFORCE REPORT , Figure 6: Number of Core Workers versus Expenditure Decommissioning Costs Exploration and Appraisal Development Costs Operating Costs Core Workforce The number of core workers is strongly correlated to total industry expenditure 3 Number of Core Personnel 3, 25, 2, 15, 1, 5, Billion (216 Money) Source: Vantage POB, Oil & Gas UK Figure 7: Annual Production per Core Worker 7, Production per Core Worker (barrels of oil equivalent) 6, 5, 4, 3, 2, 1, Production per core worker has improved by more than 4 per cent since 214. This is due to the UKCS becoming more efficient and several new field start-ups and restarts Source: Vantage POB, Oil and Gas Authority 8
9 Figure 8: Age Profile of the Offshore Workforce from 21 to 216 2,5 2, The average age of the offshore workforce increased to 42.7 years in 216, roughly in line with the UK average Number of Personnel 1,5 1, Offshore workers under 3 years of age make up 19 per cent (9,835) of the total offshore workforce, a 34 per cent contraction since Age Source: Vantage POB 7, 6, Figure 9: Nationality of the UK Offshore Workforce British EU (excluding British nationalities) Non-EU Around 15 per cent of the offshore workforce are non-british citizens, around half of whom are from the EU 5, Number of Personnel 4, 3, 2, 1, Source: Vantage POB 9
10 WORKFORCE REPORT 217 Figure 1: Geographical Distribution of the Offshore Workforce on the UKCS in 216 West of Shetlands % of Workforce Males Females 216 4,34 8% 4, ,74 3% 1,66 99 Northern North Sea % of Workforce Males Females 216 5,221 1% 5, ,482 13% 8, Central North Sea Morecambe Bay (incl. East Irish Sea) % of Workforce Males Females 216 1,1 2% 1, ,261 2% 1,22 41 % of Workforce Males Females ,739 43% 21, ,48 49% 3,76 1,332 Southern North Sea Multiple Sectors % of Workforce Males Females % of Workforce Males Females 216 6,21 12% 6, ,917 25% 12, ,23 9% 5, ,235 24% 14, Source: Vantage POB Percentages are calculated using the figures for the total offshore workforce in that year Figure 11: Distribution of the UK Offshore Workforce in 216 by UK Home Address 1
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12 Oil & Gas UK ISBN The UK Oil and Gas Industry Association Limited, trading as Oil & Gas UK
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