Report: Business Confidence Returning to UKCS
Business confidence is returning to the UK Continental Shelf (UKCS), according to an industry report released Thursday.
Aberdeen & Grampian Chamber of Commerce’s 28th Oil and Gas Survey revealed that almost two thirds (64 percent) of contractors are more confident about doing business than they were a year ago, with just eight percent indicating they were less confident.
This net balance of plus 56 percent is greater than the plus 39 percent recorded in the previous survey and the highest net balance recorded since spring 2013. Going forward, seven in ten contractors (71 percent) expect the upward momentum to continue.
The perceived value of UKCS exploration-related work, which has been negative since spring 2014 and dipped to its lowest point in autumn 2016, is expected to rise to 21 percent in the next 12 months. Contractors are also reporting a more positive outlook around production-related work in the UKCS.
“The oil and gas sector has faced up to some significant and structural challenges over recent years and is beginning to emerge fit for the future,” Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, said in an organization statement.
“It does appear that a corner has been turned but we must avoid complacency,” he added.
Moray Barber, partner at KPMG, which sponsored the report, said it was heartening to note the rising confidence respondents had in the UKCS.
“As confidence returns to the sector, the lessons learned from the last four years need to be front of mind and innovative thinking needs to remain at the fore,” Barber said in the report.
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