UK offshore confidence takes a hit, survey suggests

Oil & Gas UK’s latest Business Sentiment Index suggests growing concerns over rising UK North Sea costs, reduced drilling activity and the falling oil price.

Offshore staff

LONDONOil & Gas UK’s latest Business Sentiment Index suggests growing concerns over rising UK North Sea costs, reduced drilling activity and the falling oil price.

Operations director Oonagh Werngren said: “Over the last six quarters, there has been a marked trend towards declining optimism in the sector but this is the first time the overall index has moved into negative territory since 2009.

“In recent months, theNorth Sea oil and gas industry has been considering the implications of a falling oil price which makes it harder to attract new investment. Many of our survey respondents expressed concern over future activity levels, which have not been helped by rising costs.

“The industry urgently awaits an announcement on the 28th licensing round, the appointment of the new chief executive officer of theOil and Gas Authority, and the outcome of the Treasury’s fiscal review to ensure that the basin remains competitive on a global basis. Together, answers on these should help boost confidence in the UKCS.” 

10/31/2014

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