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Oil and gas firms could create 34,000 jobs over the next two years, study predicts

Up to 34,000 jobs could be created over the next two years in the oil and gas industry, but many companies are concerned skills shortages could limit their growth and spark a "war for talent", according to a study from Lloyds Banking Group.

The study found that Scottish oil and gas firms are more likely to expect growth than those in the UK - with 83% stating they expect to see more business.

Scottish firms were more "expansionist" than English companies, the report found, and were more likely to embrace diversification.

Lloyds Banking Group, which published the report Oil & Gas: Rising Fortunes 2, claimed this growth would translate to more than 34,000 jobs when applied to the entire sector and related businesses.

The report found that 33% of employers asked about the future believe a shortage of skills was the biggest challenge they face.

Stuart White, area director of Lloyds Bank's commercial banking in the north of Scotland said: "This is good news for the UK economy and north-east Scotland, in particular, where there is a concentration of oil and gas companies."

Paul Flynn, managing director of recruitment firm Earthstaff, said: "There needs to be a long-term plan in place to ensure the best talent is cultivated and kept within the UK to provide the calibre of people required to compete on a global scale.

"It also needs to raise the identity of engineering within the UK and ensure that its importance and credibility cascades down to grass roots level so that when a child starts school, instead of wanting to be like Alan Sugar, they are talking about Isambard Kingdom Brunel, Sir James Dyson and James Watt."