The UK offshore oil and gas industry which plays a vital role in the security of energy supply for the nation has been severely hit by the triple impact of COVID-19, the oil price crash and the lowest gas prices in the last ten years.
With many businesses facing a fight for survival, industry body OGUK, that represents over 400 companies has welcomed the UK Government’s announcement of help for both workers and companies.
Deirdre Michie, Chief Executive of OGUK said:
“Many of the companies in our industry, especially in the supply chain, are still financially fragile after the previous oil price crash, so the triple whammy we now face is particularly dangerous. In that context the strong response from the UK Government and their clear determination to support both workers and companies is very welcome. It is now crucial to ensure companies can easily and rapidly access this money as for many businesses and individuals cash flow is now vital.”
Companies in the UK offshore oil and gas industry contributes around 50% of UK gas which is used for a large proportion of our electricity production and which heats the vast majority of our homes. They also produce a major proportion of the oil that fuels our cars and is used in the manufacture of a huge proportion of the items we use in our daily lives from contact lenses and toothbrushes to the lightweight cases on our mobile phones. Companies in the UK industry are also backing the UK drive to net zero emissions and have also been working on technology to help us get there.