Web Alert: The 24th Oil Gas Survey published by Aberdeen and Grampian Chamber of Commerce
News & Insights 26 May 2016
Aberdeen and Grampian Chamber of Commerce has published the 24th Oil and Gas Survey (May 2016). The survey focuses on several areas such as business optimism and constraints as well as various expected and investments trends in the UK Continental Shelf.
Aberdeen and Grampian Chamber of Commerce has published the 24th Oil and Gas Survey (May 2016). The survey focuses on several areas such as business optimism and constraints as well as various expected and investments trends in the UK Continental Shelf (UKCS).
The survey reveals a rather bleak outlook of the North Sea sector, particularly with regards to employment in the UK oil and gas industry which has been affected by the lower oil prices over the last few years. Despite the substantial job cuts in the industry, the survey found that regional oil and gas operators have had to reduce their UK-based workforce by an average of 15% over the past 12 months and the average will likely increase by 17% in the next 12 months.
The survey also found that contractors’ confidence in the UKCS remains significantly low in that only 7% are more confident about their activities in the UKCS while 75% are less confident, with a net balance of -68%. Contractors’ optimism about their activities for the next 12 months remains negative with 27% more confident and 50% less confident about their activities in this period (with a net balance of -23%).
With the decline of oil prices over the past few years, it is unsurprising that companies have ventured into other fields and altered their business activities. The survey also revealed contractors’ trends in their business activities whereby an impressive 85% of all firms are looking to be more involved in decommissioning projects in the next few years while 63% are looking to be more involved in renewable activities.
For further information and access to the 24th Oil and Gas survey as well as previous surveys, please click here.