Oil and gas confidence rises from historic lowsStaff Writer | June 13, 2017
Improvements in oil and gas contractor confidence both in the UK Continental Shelf (UKCS) and internationally suggests some businesses are seeing signs of recovery and are focused on the future.
Oil exploration The 26th Oil and Gas survey
This is a notable rise from historic lows six months ago when only 12% of contractors were more confident and 47% were less confident.
However 52% report no change in their outlook, indicating that significant challenges still remain in the marketplace. It is too early to say a recovery is being universally felt.
More than half (52%) of contractors and operators / licensees believe that the sector has already reached the bottom of the current cycle and 26% consider it will do within the next year.
When asked what position businesses expect to be in by January 1, 2018, 42% expect their business to be growing, up from 16% who expected to be growing by January 1, 2017, while only 2% anticipate further decline.
Contractors’ investment spend is moving in a positive direction with more contractors anticipating to increase investment over the next two years (26%) rather than reduce (19%).
However, increases are limited to certain areas and again cannot be seen consistently across all parts of the industry. ■