Has North Sea Oil and Gas Turned the Corner?

Has North Sea Oil and Gas Turned the Corner?

New research results have just been published highly relevant to our current series of blog posts on the future of North Sea Oil and Gas.

Conducted by Aberdeen & Grampian Chamber of Commerce, in partnership with the prestigious Fraser of Allander Institute, the 25th Oil and Gas Survey concluded that the crisis affecting the sector may be reaching a turning point. The majority of companies surveyed stated that the sector had reached ‘rock bottom’ and that the rate of job cuts would slow considerably.

The two key headline conclusions of the survey, based on the views of 130 businesses employing 308,000 people, were as follows:

  • Record job losses were recorded in North Sea Oil and Gas last year with operators reducing their workforce by 15% on average. This was accompanied by other cost cutting measures with more than 40% of businesses surveyed stating that they had cut pay or changed benefits to cope with low oil prices.
  • On a more positive note, the majority of respondents (two out of three) believed that the sector had already reached the bottom of the cycle, or will do so next year. Expectations of further job cuts have eased with operators expecting to shed much fewer jobs next year.

The report also concluded that companies in the sector are striving to become fitter, leaner and working hard to secure the future of North Sea Oil and Gas.

As we have argued in recent blog posts the strategic use of digital technology and data analytics will be critical in this respect.

The survey was carried out in September of this year.