Draft Brexit deal could damage UK oil

Draft Brexit deal could damage UK oil

Analysts have warned that the UK’s draft withdraw agreement for leaving the European Union could increase the costs of retaining skilled workers, threatening the industry.

Last week a draft Brexit deal was published, which according to analysts contained a number of uncertainties for the industry.

David Gibbons Wood, a business and economics lecturer at Robert Gordon University (RGU), said: “It’s bringing even less certainty than we had before. We don’t know if we will be leaving the customs union and it’s asking more questions than are being answered which I think will be disturbing for the oil and gas industry.”

Although Wood stated that the current uncertainty around the industry is not helping the industry, he also pointed out that because it is a global industry it may not experience as much damage as others.

Meanwhile, senior analyst at City Index Fiona Cincotta has said the UK North Sea oil and gas industry will see an increase in the cost of maintaining skilled EU workers.

“Given that Brexit, with or without Theresa May’s deal, looks to restrict movement of people between UK and EU and vice versa the impact on the sector could be large, especially in an industry where competition for talent is fierce,” said Cincotta.

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