How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Shell cuts North Sea jobs


Oil giant Shell has announced it is to reduce the number of North Sea oil staff by 250 this year.

Shell will reduce the number of operatives in the North Sea as part of a wider range of initiatives to manage costs and improve competitiveness.

The move will affect staff based in Aberdeen and on installations in the North Sea. Workers were informed of the plans earlier today.

Shell’s upstream vice president for the UK and Ireland Paul Goodfellow said: “The North Sea has been a challenging operating environment for some time. Reforms to the fiscal regime announced in the budget are a step in the right direction, but the industry must redouble its efforts to tackle costs and improve profitability if the North Sea is to continue to attract investment.”

Lower oil prices have been welcomed by the transport industry and car owners. But last December there were concerns that falling oil prices could threaten the North Sea oil industry.

Service providers such as Schlumberger have already announced job losses and are reducing new recruitment.

Paul Goodfellow said it is important that the business is competitive and “changes are vital if it is to be sustainable.”

Much of the oil drilled in the North Sea now involves deep sea drilling which is expensive. In December the chairman of Brindex (the independent explorers’ association) Robin Allan said new projects in the North Sea would be unprofitable with oil below $60 a barrel. In their press release Shell said Oil and Gas UK warned that about 20% of production in the UK is not economical at $50 a barrel.

Oil prices rose 6% today as a result of turmoil in Yemen but they are still only around $60 a barrel.

If prices don’t increase we can expect further job losses in the oil industry and its related industries.

The fall in oil prices is good for transport and energy prices. But for those involved in the oil industry, whether they are Multi Nationals or small family businesses, these are worrying times.

Related Articles

energy news 240217

Energy News – 24/02/2017

What’s been making headlines across the energy world this week? We round up the big stories from the las...

Read More
content calendar download

Free Content Calendar Download

This month we have a free content marketing calendar download for our blog readers and newsletter subscribers....

Read More
Renewable energy sources: what is hydropower?

Renewable energy sources: what is hydropower?

Energy generated by water has been used for thousands of years but only recently to generate electricity. We t...

Read More
Excellent, 9.7 / 10

Great Service

"Jessica Purnell was great, she was helpful and everything was easy. I have saved £150 per month! many thanks Jess :-)"

This review was posted by Melanie Baker on the 23rd of February 2017

Thank you Jess Purnell!

"Jess really helped us out with switching suppliers... she wasn't pushy at all and the service was great. Thanks again!"

This review was posted by Becki on the 23rd of February 2017

Thanks for your help Mark Weeks and Switch My business

"I would like to thank Switch My Business and particularly Mark Weeks for the ease of switching and saving me money! I can highly recommend them. Thanks again Richard Blake"

This review was posted by Richard Blake on the 22nd of February 2017

Aaron Gallagher

"Aaron sorted out a new electricity deal for my church, enabling us to make good savings. We have now received confirmation of our new 3 year plan.During our telephone conversations Aaron was always very polite and efficient. Dawn Marskell"

This review was posted by Dawn Marskell on the 21st of February 2017

Great help switching

"First time I have ever done an energy supplier switch, it seemed a bit daunting but the way EDF has rocketed our industrial energy bill I had no option, Bea Luseni guided me through the process and took all the worry away, many thanks well done"

This review was posted by Horatio on the 17th of February 2017