The Q1 2014 Oil & Gas UK Business Sentiment Index reveals that while the industry’s optimism has continued to decline, it remains positive, at six points above zero on the -50 to +50 index. Oil & Gas UK say that: “The low levels of drilling, and cost pressures caused by; increasing operating costs, the tight labour market, and changes to the industry’s fiscal environment may have contributed towards a dampening of optimism in the industry.”
Uncertainty, until just a few days ago regarding proposed CAA seating restrictions, may not have helped.
However, Oonagh Werngren, Oil & Gas UK’s operations director, commented: “If the current rate of investment is sustained, we believe that there is real hope for the long term future of this industry as the UK Continental Shelf has the potential to secure up to a further 24 billion barrels of oil equivalent (boe) – with our industry taking active steps to recover those resources beyond 2050.”
The full report can be found here: http://www.oilandgasuk.co.uk/publications/viewpub.cfm?frmPubID=811
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