Latest news with #offshoreenergy
The Independent
2 days ago
- Business
- The Independent
Oil industry could see job cuts like Grangemouth every fortnight, report warns
The number of jobs in the UK oil and gas sector could plunge to just 57,000 in the next few years, with a report warning there could be the equivalent of 400 cut every fortnight. That level of job losses would be the same as the closure of the Grangemouth oil refinery every two weeks, according to research by Aberdeen's Robert Gordon University. It said in 'low-case scenarios', where the UK makes 'slower progress' as the country transitions towards renewable energy, jobs in the oil and gas workforce would drop from 115,000 at present to 'as low as 57,000 by the early 2030s'. The report added this would be a 'reduction of around 400 jobs – equivalent to the closure of the Grangemouth refinery – every two weeks'. With almost one in 30 Scottish workers currently employed in either the offshore energy sector, or an industry which supports it – compared to one in 220 across the UK – it highlighted how the 'potential risks for Scotland's supply chain and workforce are substantial'. Figures for 2024 show there were 154,000 people employed in the offshore energy sector – with 75% in the oil and gas sector and the remaining 25% in renewables. The Striking The Balance report noted the production of oil is now down by 'almost 75% from its peak' in 1999-2000, when it produced the equivalent of 4.5 million barrels of oil per day. This has now dropped to 1.09 million barrels of oil equivalent a day, with the report noting that without new licences being granted 'the oil and gas industry is forecast to decline by around 95% by 2050 from 2024 levels'. The report said: 'Depending on which scenario will play out, the direct and indirect UK oil and gas workforce is expected to fall from 115,000 to between 57,000 and 71,000 by the early 2030s, with further declines to between 33,000 and 48,000 by 2035.' SNP Westminster leader Stephen Flynn challenged Westminster to act in the wake of the report. He said: 'The independent expert advice is clear, we will see a Grangemouth scale of job losses each and every fortnight if the UK Government does not shift from its misguided position and protect the energy industry of today, so that the workforce can use their skills and expertise to develop the net zero industries of tomorrow. 'The opportunities of net zero are enormous but they will not be realised if the Labour Government continues with its current fiscal regime that deters stability, confidence and investment in existing industries and we therefore lose our best people, and world-class supply chain, to nations elsewhere.' Scottish Conservative energy spokesman and North East Scotland MSP Douglas Lumsden insisted however that both the Scottish and UK governments need to change their approach. He said the 'alarming' report 'lays bare the economic vandalism caused by both Labour and the SNP's opposition to oil and gas'. He added: 'John Swinney and Keir Starmer have disgracefully sat back while jobs continue to be lost throughout the sector as both remain totally oblivious to the fact that renewables alone can't yet satisfy our energy needs.' Pressed on the issue in Holyrood, Scottish climate action minister Alasdair Allan vowed ministers will 'learn' from the report, saying: 'We hope the UK Government will too.' While some areas regarding energy are devolved to Holyrood, he added that others are reserved to Westminster and 'we must get helpful decisions from the UK Government'. He said the UK Government could provide a 'full funding package' for the Acorn carbon capture and storage project in Aberdeenshire in next week's comprehensive spending review. A spokesperson for the UK Department for Energy Security and Net Zero said: 'We have taken rapid steps to deliver the next generation of good jobs for North Sea workers in a fair and orderly transition as part of our Plan for Change, including by making the biggest investment in offshore wind and two first-of-a-kind carbon capture storage clusters. 'This comes alongside Great British Energy, headquartered in Aberdeen, which has already announced a £300 million investment into British supply chains, unlocking significant investment and helping to create thousands of skilled jobs
Yahoo
3 days ago
- Business
- Yahoo
Boost for town as 200 new jobs present 'real opportunities for local people'
An energy giant recruiting for 200 new jobs in a Norfolk coastal town presents "real opportunities for local people", a councillor has said. RWE will begin recruiting for permanent roles at its Norfolk windfarm operations and maintenance base in Great Yarmouth early next year. Councillor Daniel Candon, who represents Bradwell North at Great Yarmouth Borough Council, has welcomed the new saying it is "a clear sign that our town is leading the way in the UK's energy future". Councillor Daniel Candon (Image: Supplied) 'The commitment of 200 new jobs is fantastic news for Great Yarmouth," he said. "For years we've been at the forefront of offshore energy and innovation and this announcement shows that the rest of the country is finally starting to take notice. "These jobs mean real opportunities for local people and renewed confidence in Great Yarmouth as a powerhouse in the energy sector.' READ MORE: East's energy sector blasts government for 'ignoring region' The permanent roles at RWE's South Denes peninsula port base will support the construction and maintenance of its Norfolk Offshore Wind Zone. The project is made up of three windfarms that will generate enough clean energy to power more than four million UK homes. Speaking at the Southern North Sea conference (SNS2025) at the Norfolk Showground in May, RWE's senior operations and maintenance packages manager, Richard Beck, said the company will aim to recruit locally. Richard Beck, RWE's senior operations and maintenance packages manager, speaking at the Southern North Sea conference at the Norfolk Showground (Image: EEEGR) He said RWE is already engaging with apprentices enrolling on courses at colleges across the region. 'There will be a high demand for these roles," he said, speaking at the annual event hosted by the East of England Energy Group (EEEGR). "There are fantastic careers for life and we have been seeing the seeds in the community.' RWE's Norfolk Offshore Wind Zone (Image: RWE) RWE's Norfolk Offshore Wind Zone is made up of three projects: Vanguard West, Vanguard East and Boreas. The projects have secured seabed rights, grid connections, Development Consent Orders and all other essential permits.
E&E News
23-05-2025
- Business
- E&E News
Interior will oversee oil decommissioning in marine sanctuary
The Trump administration is giving an offshore regulatory agency new authority over decommissioning oil and gas sites in a recently created marine sanctuary off California's central coast. The Interior Department said Thursday that its Bureau of Safety and Environmental Enforcement is now the lead federal agency to oversee retiring oil and gas platforms in the Chumash Heritage National Marine Sanctuary. The 4,543-square-mile swath of the Pacific Ocean became protected near the end of the Biden administration. Oil and gas decommissioning oversight for the area had been under the Department of Commerce. 'This is a strong example of interagency collaboration to streamline permitting and promote responsible energy development while honoring our commitment to environmental protection,' said Interior's acting Assistant Secretary for Land and Minerals Management, Adam Suess, in a statement. 'By leveraging BSEE's regulatory expertise, we can ensure that offshore decommissioning activities within the sanctuary are conducted safely and efficiently.' Advertisement BSEE is charged with leading safety and environmental protection related to offshore energy activities on the U.S. Outer Continental Shelf. The Bureau of Ocean Energy Management, which is also part of Interior, manages the development of resources in that offshore region.
Yahoo
17-05-2025
- Business
- Yahoo
2 stocks to consider buying while they're this cheap
Cheap stocks come in all shapes and sizes. A share costing £100 might well be dirt-cheap, while one priced at 10p could prove to be grossly overvalued. Here, I want to highlight a pair of cut-price stocks that I think are worth considering as buys. First up is Ashtead Technology (LSE: AT.). This AIM-listed small-cap stock has had a rough time, slumping 49% over the past year. Yet, it's still up 187% since listing in late 2021, which is testament to the company's solid growth. Ashtead Technology is a subsea equipment rental and solutions provider for the global offshore energy sector. Its business spans both oil and gas and renewables, with 85% of its equipment transferrable between the two. This gives the firm flexibility and the chance to capitalise on trends in both areas. For example, the decommissioning of oil and gas infrastructure, or the building of wind turbines. A serial acquirer, the company has amassed a rental fleet of over 30,000 assets. Revenue growth has been strong, rising from £42.4m in 2020 to an expected £228m this year. Profits have also motored higher and the £370m firm sports an attractive 25% operating margin. The key risk here is that a global economic downturn could lead to less demand for Ashtead Technology's services. There's also weak sentiment for the renewables sector right now (an important growth market for the firm). For instance, green energy giant Ørsted has pulled out of the UK's massive Hornsea 4 offshore wind project in its current form due to high costs. Ørsted's share price, by the way, is down 64% in five years! This is why Ashtead Technology's flexibility and geographic diversification is an advantage. Its fate is not tied to North Sea oil and gas or UK renewable energy policy. It has facilities located in key offshore energy hubs in Europe, the Americas, the Middle East, and Asia Pacific. After its fall, the stock is trading at 9.5 times forward earnings and has a P/E-to-growth (PEG) ratio of 0.5. These metrics look attractive, even if the company's earnings won't grow as quickly over the next couple of years as they have in the past. The second cheap stock is Alphabet (NASDAQ: GOOGL). The Google owner's share price is down 20% since the start of February. Investors have been fretting about the changing landscape in internet search, with AI-powered chatbots rapidly gaining in popularity. This is obviously a key risk that Alphabet is attempting to navigate, as 56% of revenue came from Google's search business in Q1. However, it's unlikely that traditional search engines are going to disappear overnight. Google has been incorporating AI summaries into search, which it says is boosting engagement. It also has its own AI chatbot, Gemini, and I expect it to monetise that with ads in future. Meanwhile, YouTube is going from strength to strength, as is Google Cloud (it grew 28% in Q1, bringing in $12.3bn). And its Waymo robotaxi business is launching in more cities in 2025 and 2026. Google is also making progress in quantum computing research. Right now, Alphabet shares can be picked up for 17.6 times forward earnings. I see a lot of value for long-term investors, despite the scary headlines predicting Google's imminent demise. The post 2 stocks to consider buying while they're this cheap appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Ben McPoland has positions in Ashtead Technology Plc. The Motley Fool UK has recommended Alphabet and Ashtead Technology Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Bristow Group Inc (VTOL) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
The offshore energy services segment in Europe experienced a revenue decrease of $4.5 million due to lower utilization in the UK. Working capital uses of $56.4 million were primarily due to increased accounts receivables and costs related to new government services contracts. Revenues decreased by $3 million due to lower utilization in the Fixed Wing operations in Australia and unfavorable foreign exchange rate impacts. US tariffs on steel and aluminum imports have introduced incremental costs and complexity into the supply chain, affecting repairs and maintenance costs. Bristow maintains a strong balance sheet and liquidity position, with available liquidity of approximately $254 million as of March 31, 2025. The government services segment showed increased revenues due to new contracts, such as the Irish Coast Guard contract. The company reported strong financial results for the first quarter and reaffirmed its financial guidance for 2025 and 2026. Bristow Group Inc ( NYSE:VTOL ) achieved its target of zero air accidents in Q1 2025, highlighting its commitment to safety. For the complete transcript of the earnings call, please refer to the full earnings call transcript . Cash Flow: Cash used in operating activities was $0.6 million; working capital uses of $56.4 million due to increased accounts receivables and inventory. Revenue: Decreased by $3 million due to lower utilization in Fixed Wing operations in Australia, partially offset by new contracts and government services. Story Continues Q & A Highlights Q: Given the uncertainty in the broader market, why is Bristow Group reaffirming its guidance for 2025 and 2026? A: Christopher Bradshaw, President and CEO, explained that despite macroeconomic challenges, Bristow Group is confident in its guidance due to stable cash flows from government services, the stability of production support activities in offshore energy, and the geographic diversity of its markets. Q: Can you expand on the benefits of the new long-term S-92 agreement with Sikorsky? A: Christopher Bradshaw stated that the agreement provides price visibility and stability for Bristow's global fleet of S-92 helicopters, which supports both search and rescue and offshore energy operations, ensuring better business management. Q: Are there any updates on the advanced air mobility opportunity in Norway? A: Christopher Bradshaw shared that Bristow is part of a project with Avinor and the Norwegian Civil Aviation Authority to establish Norway as a test arena for zero and low emission aircraft. Demonstration flights will begin with cargo using Beta Technologies' aircraft, with Bristow as the operator. Q: What is the potential cost exposure in a higher tariff environment for Bristow, given its international operations? A: Christopher Bradshaw noted that while most revenues are generated outside the US, there is some exposure to tariffs on imported aircraft parts. However, this is not expected to materially impact Bristow's financial results. Q: Have there been any changes or improvements in supply chain challenges recently? A: Christopher Bradshaw mentioned that there have been incremental improvements, particularly with the S-92 fleet, although some delays persist across various helicopter components, impacting the broader aviation industry. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
