THE NORTH Sea oil and gas industry faces an exodus of talent as George Osborne has failed to offer the troubled sector sufficient support, a new study has said.

Research by industry website Rigzone found 71 per cent of respondents across the UK are thinking about a move overseas, with lack of job security cited as the main reason by those working in the North Sea and Scotland.

The survey found that almost half have little confidence in the ability of tax cuts announced by the Chancellor in the Budget last month to stimulate investment in the North Sea.

The industry supports about 65,000 North-East jobs but has struggled over the last six months amid falling oil prices, forcing companies to lay-off workers.

BP, ConocoPhillips, Chevron and Shell have all made staff redundant, with trenching firm Reef Subsea UK, based at Thornaby, near Stockton, and Darlington’s DeepOcean UK also shedding posts after being rocked by the troubled environment.

Mark Guest, international managing director of Rigzone, said: "Oil and gas professionals are highly mobile.

"If assurances cannot be given by the industry about the mid to long-term career opportunities in the UK's off-shore market, our survey indicates that many professionals may simply look for work elsewhere.

"This could exacerbate recruitment issues in the sector at a time when the industry has already highlighted a shortage of engineering students graduating from British universities."

The Government's £1.3bn package of support includes a cut to the supplementary charge on oil industry companies' profits from 30 per cent to 20 per cent and a reduction in petroleum revenue tax from 50 per cent to 35 per cent next year.

A tax allowance is to be introduced to stimulate investment in the North Sea alongside a £20m fund for new surveys of the UK continental shelf (UKCS) aimed at boosting exploration.

The survey of 963 oil and gas professionals across the UK found only 17 per cent believe the initiatives will be enough to stimulate meaningful investment in North Sea exploration over the next five years, with 38 per cent undecided.

In February the industry reported its worst annual performance in 40 years. Oil & Gas UK reported a negative cash flow of £5.3bn in 2014 - the worst since the 1970s.

Across the UK, 78 per cent of respondents expressed support for Norway's approach to stimulating exploration, whereby companies can claim back the cost of exploration spending.