Thursday 13 February 2014

Confidence of UK oil and gas industry constrained by rising costs

The Q4 2013 Oil & Gas UK Business Sentiment Index has revealed that while the industry’s optimism has continued to decline, it remains eight points above zero on the -50 to +50 index. 

Capturing a snapshot of the industry mood, the index measures a number of economic indicators, including changes in business confidence, activity levels, business revenue, investment and employment with a higher rating (above zero) indicating a more positive outlook and a lower rating (below zero) expressing a more negative opinion.

Oonagh Werngren, Oil & Gas UK’s operations director, said: “Since the beginning of 2013, the mood of the industry has remained in positive territory possibly due to the significant investment in the UK continental shelf (UKCS) which took place in 2013. However, the industry recognises there are underlying problems that need addressing. Influential factors affecting the mood of the sector include rising operating costs and the delay of several large scale projects during 2013. Another factor denting optimism is the current decline in exploration which is causing concern across the sector.”

It is therefore important that the industry works together with the Department of Energy and Climate Change (DECC) and HM Treasury to maximise economic recovery of our offshore oil and gas resources and sustain future production. There are substantial volumes of oil and gas yet to recover from the UKCS but action must be taken now to avoid billions of barrels being left under the North Sea.”

Ends.

For further information, contact Lucy Gordon on 01224 577331.

The full Oil & Gas UK Business Sentiment  Q4 2013 Index report can be found here