Oil and Gas UK has called for unity to reduce the effects of the vote to exit the European Union. The UK oil and gas sector is already reeling due to plunging oil prices, which has resulted in many oil and gas contractors and companies cutting their workforce to minimise their operational costs and losses.
A report published in mid-June 2016 by Oil and Gas UK stated that since the downturn of the oil and gas markets in 2014, the sector has reduced its workforce by 120,000, and another 40,000 jobs are expected to go by the end of 2016.
Oil and Gas UK issued a statement saying that it respected the outcome of the vote but was staying apolitical to come up with a strategy to ensure a hassle-free transition.
Prime Minister David Cameron, who has resigned following the surprise outcome of the referendum, said that he would do everything he can as Prime Minister to steady the economy in the coming few weeks but would not be staying on. The oil and gas sector warned of the effects that the low oil price would have on the country’s economy.
Oil and Gas UK said that it hopes the British oil and gas sector unites to work constructively to make the transition as smooth as possible, and it requested that the Government clearly outlines the process so that it reduces losses during this period of uncertainty.
The group also stated that it would consult its members as to how to handle the departure. In the meantime, British energy giant BP said that it respected the decision made by the voters and would continue to be an integral part of the nation’s economy. BP also stated that it was too early to understand the implications of the referendum, but it did not expect it to have a major impact on its business and investments in the UK and continental Europe, and on the location of its headquarters and staff.
BP announced in January 2016 that it would be reducing its workforce by 600 so that it could stay competitive in the North Sea.