OIL and gas experts have warned that the number of jobs lost to the industry since the start of the price slump could rise to 120,000 by the end of the year.

Trade body Oil and Gas UK have predicted that firms will continue to cut staff, including workers in the North Sea, with the "severe strain" of continued low oil prices showing no sign of abating.

With a barrel of oil currently trading at less than half the price it was in 2014, jobs supported fell by an estimated 84,000 to around 370,000 in 2015 and are now forecast to drop a further 40,000 by the end of this year.

This would push the total number of jobs supported by the industry to 330,000, which includes both offshore and onshore employment and those working in the supply chain and the wider economy.

Deirdre Michie, chief executive of Oil & Gas UK, said that efforts were being made to help those affected by the crisis, with both the Scottish and UK Governments trying to find alternative employment.

She said: “We cannot underestimate the impact the global downturn in the industry is having on the UK economy, nor the personal toll for those who have lost their jobs, and the effect on their families and colleagues.

“The industry has been spending more than it is earning since the oil price slump towards the end of 2014. This is not sustainable and companies have been faced with some very difficult decisions."

However, Ms Michie insisted there was hope for the industry, although difficult choices would have to be made.

She said: "To survive, the industry has had no choice but to improve its performance. It is looking to find efficiencies to restore competitiveness, to attract investment and stimulate activity in the North Sea.

"With up to 20 billion barrels of oil and gas still to recover, this region is still very much open for business.

“It is also important we consider what we can do in the immediate term to stimulate activity in support of exploration and development of existing small pools opportunities to help support the supply chain as it goes through these challenging times.”

Leading members of the industry will be meet at Oil & Gas UK’s Annual Conference in Aberdeen next week to consider what steps can be taken to stay afloat during the current downturn and how to safeguard the 330,000 jobs it still supports.

Scottish Labour Economy spokesperson Jackie Baillie called the figures "stark", saying they underlined the crisis facing the industry.

She added: "We need both short and long term responses to this crisis. Labour has called for a public agency to protect strategic investments.

"In the short term we need to support workers. The SNP's flagship training fund has not delivered anywhere near enough support.

"The SNP ignored the oil jobs crisis for months because it was politically embarrassing for them. We need to see much more regular reporting of the impact of the changing oil price on jobs and the economy. "

A Scottish Government spokesman said: "We are engaging closely with the industry, trade unions and regulator to overcome the current challenges to ensure a long term future for the sector.

“We are focused on creating a competitive and supportive business environment and promoting innovation throughout the supply chain – however, it is the UK Government that retains control of the key taxation levers affecting the sector, and that must take the action needed to incentivise investment to protect jobs.

“The Energy Jobs Taskforce is also working with industry partners to help the supply chain react to the current challenges in the industry."

A spokesman for the UK Government said: “The UK Government is clear that the broad shoulders of the UK are 100 per cent behind our oil and gas industry and the thousands of workers and families it supports.

“We have established the Oil and Gas Authority to drive greater collaboration and productivity within industry, and in the last two budgets we announced radical packages of tax measures worth £2.3bn to ensure the UK Continental Shelf (UKCS) remains an attractive destination for investment. No other government has made fiscal changes as extensive in response to falling oil prices.

“In January this year we announced a further package of measures including another £20m funding for a further round of seismic surveys, and our strategy to maximise economic recovery of the UKCS. We look forward to the industry capitalising on this, to deliver efficiencies and make the industry more robust now and for the future.”