Optimism in oil and gas sector grows

Firms cite the positive impact of efficiency initiatives as reasons for optimism

Optimism in the UK oil and gas industry rose slightly in the third quarter of 2015, according to Oil & Gas UK’s Business Sentiment Index.

The survey of about 1,500 representatives from operator and contractor businesses found respondents returning a score of -25 on a -50/+50 scale, an increase of two points from -27 reported by the survey in the second quarter of the year.

Respondents cited the positive impact of efficiency initiatives – such as improved management of inventory levels, business process reviews and engaging with the workforce for ideas for efficiency improvements – as reasons for optimism.

Some respondents also indicated a positive outlook regarding potential opportunities in the decommissioning market.

Oonagh Werngren, Oil & Gas UK’s operations director, said: “While the overall index remains in negative territory for the fifth quarter in a row, there is a slight improvement in mood for the second quarter in succession.

“The slight rise in optimism, however, is counter-balanced by a large number of companies expressing concern about future activity levels, with 55% reporting lower activity than the second quarter of 2015. Job losses continue to be a matter of concern to the majority of respondents, with just over 60% indicating that headcount has already been or will be reduced,” she added.

To hear more about this subject, visit Offshore Engineering 2015 on 7-8 December 2015, Aberdeen.