The UK oil and gas industry “needs to change”.
That’s according to a new report by the Oil & Gas Authority (OGA), which was established to help maximise the sector’s economic recovery in the UK North Sea.
It estimates around 5,500 jobs have been lost since late 2014 following the decline in oil prices.
The report states: “The challenges facing our oil and gas industry at this time are considerable.”
It added the “key ingredient” in tackling “the immediate risks and creating a positive long-term future” is making sure the “tripartite approach” works well across the UK Continental Shelf.
It went on: “Therefore continued co-operation and collaboration between industry, government and the OGA is essential.”
The OGA said operators and service companies need to recognise the need for concerted action to create a competitive cost base, increase profitability and improve efficiency.
It added further work is necessary to encourage companies to adopt “more positive and constructive commercial, legal and operating behaviours”.
The OGA announced the remaining winners for exploration on the UK Continental Shelf in July.