A study conducted by the Aberdeen & Grampian Chamber of Commerce has revealed increasing confidence amongst contractors regarding the future of the UK Continental Shelf. A notable 38% of contractors are more confident about the progression within the industry, in comparison to only 12% just six months ago.
Confidence in the market signals for contractors and operators alike that now is the time to increase investment in their operations. Over 26% of contractors in the study, anticipated an increase in investment rather than a reduction, in the next two years. This is set to have a positive impact on industry efficiency, as continuous development will promote innovation and drive new technologies. As such this will stimulate growth in the sector, acting to provide greater stability for energy security within the UK whilst also reducing the skills gap in employment.
However, although extremely positive news, the oil and gas industry still faces considerable challenges caused by the macroeconomic conditions globally. The price of oil is a key indicator for the direction of the industry, and with sensitive geopolitical tensions between Qatar and the oil-rich Gulf States, most crucially Saudi Arabia, the looming uncertainty has resulted in a fluctuating oil price.
With over 35 years’ experience of operating in the oil and gas sector, we are delighted to see that the sector is taking an upturn and we are looking forward to new projects that have been recently announced come into fruition.