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Strategic State Support for the Oil and Gas Industry

That the Parliament welcomes the call from Unite the Union for strategic state support in the oil and gas industry; believes that it is not in the interests of workers of offshore oil and gas companies to use the recent downturn in the industry to impose what it considers regressive working practices across the North Sea; condemns the industry for, it believes, imposing cuts to pay and holiday entitlement while increasing shift rotas following a sharp drop in the price of oil; recognises that the price of a barrel of oil fell from between $110 and $120 during the period 2011 to 2014 to around $25 a barrel in early 2016; understands that more than 160,000 direct and indirect offshore jobs were lost between 2014 (463,900 jobs) and 2017 (302,200 jobs) as a result of the downturn; further understands that Oil and Gas UK estimates that the sector saw revenues fall by more than £10 billion from 2014 to 2016; believes that the price of oil recently reached $80 a barrel for the first time in four years and that it is projected by global analysts that over the coming months the price could reach $100 a barrel; believes that strategic support from the UK and Scottish governments could ensure maximum economic recovery while at the same time ensuring that the workforce does not pay the brunt of economic downturns through a dismantling of working benefits and conditions, and welcomes the union’s repeated calls for a national decommissioning strategy with the understanding that activity in Scotland over the next 10 years could be valued at between £8.3 billion and £11.3 billion, which it considers would support peak employment of between 16,925 and 22,775 jobs.

Supported by: Neil Findlay, Elaine Smith


Current Status: Fallen on 24/10/2018
 
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