BBC: Oil industry 'needs to cut costs even if it means job losses'

The oil and gas industry must do more to cut costs even if it means more job losses, it has been claimed.

Industry body Oil and Gas UK's annual economic report said operating costs were 60% higher than three years ago while oil prices were falling. There have already been substantial layoffs at companies this year.

Shell UK announced 250 onshore jobs cuts from its North Sea operation in Aberdeen in August, after Chevron announced 225 in July.

Oil and Gas UK's chief executive Malcolm Webb said: "This country depends on oil and gas for some 70% of our primary energy needs and oil and gas from the UK offshore areas supply nearly 50% of that. "Our industry has a crucial role to play in the future wellbeing of this country.
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