THE oil industry crisis will recover from its pricing crisis to continue supporting thousands of North-East jobs, a sector leader has said.

George Rafferty, NOF Energy chief executive, said while prices have fallen to a near six-year low, transferable workers' skills and technological advances will help them rise again.

Figures show Brent crude is now close to 51 US dollars a barrel (£34), nearing a level not seen since May 2009, as supply outpaces demand.

The oil and gas sector supports about 65,000 jobs in the region, with North-East offshore skills demanded internationally and the industry intrinsic to local infrastructure, reflected by workers’ use of daily flights from Durham Tees Valley Airport to Aberdeen.

The price drop comes less than a month after Robin Allan, director of Premier Oil and chairman of the independent explorers’ association Brindex, claimed the industry was close to collapse and BP and Royal Dutch Shell backed away from costly spending projects.

However, despite the worries, Mr Rafferty, of Durham-based NOF Energy, which supports oil and gas, nuclear and offshore businesses, told The Northern Echo he remains positive.

He added: "While our members are keeping a watching brief on the current oil price, they are very much focused on the long-term future of the offshore sector.

"The industry will recover and innovative and flexible supply chain companies, including many in the North-East, are pro-actively supporting operators and lead contractors’ challenge to control costs through specialist technology-led solutions and services.”

Last month, NOF also released its annual survey, which said 92 per cent of members believe oil and gas will remain the most important part of their business in 2015.

Experts say oil prices are now less than half of their previous 116 US dollar high, with the US’ shale gas boom and weakness in the global economy causing supply to outstrip demand.

They added the fall would present UK-based companies with significant difficulties, but added the situation would give motorists a lift in reducing petrol prices.

Last night, the Government confirmed it is monitoring the situation, with a Downing Street spokesman revealing Chancellor George Osborne discussed oil prices in his first Cabinet meeting of the year.

The spokesman added: “In terms of families, it is positive news over the impact it has on prices people are paying on forecourts.

“But there are also potential sectoral impacts and we continue to work closely with the North Sea sector.

“If you look across the UK economy as a whole, while noting and recognising the impact it may have on some specific sectors, it is good news for families up and down the country.”