Oil & Gas report highlights the importance of petrochemical jobs

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Date: Wed, 18 Aug 2010 Time: 5:48 AM
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A report by Oil & Gas UK has indicated that the UK's petrochemical industry could be a determining factor in steering the country back into growth and out of recession.

Petrochemicals are essential in the manufacture and production of thousands of different products, and the stability and strength of the petrochemical industry could make it a primary component in economic recovery. The annual report by Oil & Gas UK also underlines its importance as a source of petrochemical jobs, as a primary energy supply and for the development of technology, tax revenues and investment.

The re-establishment of manufacturing

The coalition government has made its position clear - it wants the manufacturing sector to be re-established as one of UK's foundation industries. With so many jobs at risk in the service sector, British manufacturing could be at the brink of a Renaissance, restoring confidence and leading a more stable, long-term economy. At the heart of this Renaissance is the petrochemical sector - the basis of many other satellite industries.

Malcolm Webb, the Chief Executive of Oil & Gas UK, believes that despite the bleak economic times that may still lay ahead, it is the petrochemical, oil and gas industries that are the important engines for economic growth. "Even after more than 40 years of production, the industry has the potential for a great future," he comments. Mr Webb believes that future is not only to be found in the continued development of remaining offshore oil and gas reserves, but also in the commercial activities of the supply chain that feeds the industry.

Petrochemicals - a vital part of the economy

Although oil and gas production dropped by 10% in 2009 as compared to 2008, that fall was influenced by a 9% drop in demand. Yet the UK is still the 15th largest gas producer in the world, and the 19th largest oil producer. The sustainability of UK oil and gas production is politically a hot potato, and the coalition government is eager to cement its green credentials by promoting the exploration of renewable energy. But petrochemicals still form a vital part of the economy, with an estimated 15-24billion barrels of oil left to tap into from existing and new fields. It is these new fields that will produce more petrochemical jobs both upstream and downstream, and with restored confidence in the oil and gas industry, the oil and gas jobs market is a buoyant one.

The UK's oil and gas reserves meet 94% and 68% of demand respectively, making the UK almost self-sufficient in oil. Contrary to popular belief, supplies are not ‘dwindling' and the UK does not face a shortage any time soon. With sustained investment and the right business management, the present oil and gas reserves will continue to supply up to half of the UK's needs right up to 2020. Investor confidence in the sector is high, restored by a more stable economic situation and greater confidence in manufacturing in general. Operating costs have been cut by 6% in the last year, making the industry leaner and fitter. This has been achieved without the usual raft of redundancies that ‘streamlining' tends to cause in other industries.

For the future, a potential £60billion of investment in new production over the next ten years will result in plenty more petrochemical jobs and an industry that is in a surprisingly healthy, stable and positive state. It is this that could play such an important role in driving the UK out of recession and into growth during the next few years, creating a more stable economy and better job security across a variety of industries. It could also mean the re-emergence of manufacturing as a dominant force over a more unstable service sector.

About the Author

Paul B Smith - Search petrochemical jobs and other engineering roles in specialist sectors: oil & gas, automotive & aerospace, petrochemical & process, mining & minerals, nuclear & power. Candidates can register CVs online and search jobs across all of our sectors.