North Sea to warn government subsea sector risks losing world-leading position
North Sea oil and gas leaders will deliver a stark warning to the government tomorrow, saying that the subsea sector risks losing its world-leading position.
Industry body Subsea UK is leading a delegation to tell Westminister what it must do to help the embattled sector, which focuses on the exploration, drilling and development of oil fields located under the sea.
Read more: IEA says global oil markets appear to be balancing
"Until the oil price collapse, subsea was one of the fastest-growing industries in the UK, with a world-leading position," Neil Gordon, Subsea UK chief executive, said.
He continued: "This position is now under threat unless we can sustain our supply chain, develop and commercialise the next wave of underwater technologies required to exploit our hydrocarbon and renewable resources around the world, and ensure we are creating and enthusing the next generation of subsea engineers."
They group will urge more government support and funding for research and development, greater incentives to encourage exploration as well as support for maintaining and increasing the North Sea's export potential.
Read more: Opec keeps global oil demand forecast unchanged, price tanks
It comes days after another industry body, Oil & Gas UK, warned that the downturn, which started in the middle of 2014, would've claimed around 120,000 oil and gas jobs by the end of this year.
Oil prices fell below $28 per barrel in January, however they've since recovered somewhat to hover around the $50 mark.