Nearly 40,000 jobs could be created in the UK’s oil and gas industry in the next two years, new research claims.

A majority (69%) of oil and gas company executives are optimistic about employment growth in 2014/15 – although a total of 38% said the greatest challenge would be a shortage of skilled workers, according to the Bank of Scotland, which commissioned the report.

International expansion was cited as a priority by 64% of the executives, with Africa, North America and the Middle East expected to be key areas for investment.

When asked about diversification, nearly half of all 100 companies surveyed were “moderately to intensely interested” in onshore shale gas while nearly two-fifths (38%) had the same degree of interest in funding solutions for decommissioning activities. More than a third (36%) also said they were interested in renewable energy.

Stuart White, Commercial Area Director said: “The findings of this report are excellent news for the economy demonstrating the employment generating nature of the oil and gas industry now and in the future.

“With most of the UK’s oil and gas firms clustered in Aberdeen and the North-east, Scotland should reap the largest share of these new jobs, however other parts of the UK will benefit from expansion plans. The report also highlights the growing challenges posed by the lack of a skilled workforce.”