Covid: Offshore projects restart 'could take three years'

Restarting offshore oil and gas projects stalled by the pandemic and the sharp drop in energy prices could take three years, it has been claimed.

Oil and Gas UK (OGUK) said drilling activity was at its lowest level for nearly 50 years.

The industry body said price volatility was putting off decisions on new projects.

It said UK gas demand fell by 16% in the second quarter of the year compared with the same period in 2019.

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OGUK's market intelligence manager Ross Dornan said: "New projects and investments are crucial to providing secure energy, sustaining supply chain capabilities, and ensuring the UK is viewed as a good place for these companies to anchor their resources.

"It is estimated that companies could continue to take a conservative approach in 2021, reflecting the ongoing challenges of the coronavirus pandemic and the wider economic downturn."

OGUK said last month that the number of people working offshore in the North Sea fell by more than a third at the start of the coronavirus lockdown.

Figures said the average weekly workforce dropped from 11,000 to 7,000, during March.

A halt in drilling and engineering construction was blamed for the sudden loss of 4,000 jobs. Although numbers offshore have since risen steadily they only peaked at 9,000 in August.

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